US consumer prices hit a more than 16-year high last March. Among the reasons are the record highs of fuel prices, coming from the supply shock with the war in Ukraine.
The rise in inflation consolidates the case for a possible increase of 50 basis points in the interest rate, which should be analyzed by the Federal Reserve (Fed, the American central bank) next month.
According to the US Department of Labor, the consumer price index (CPI) rose 1.2% last month, the biggest monthly gain since September 2005. In February, the indicator rose 0.8%. .
Gasoline prices, on average, rose to an all-time high of $4.33 a gallon in March, according to the American Automobile Association (AAA). Fuel was the main driver of inflation last month, but food and services, such as rental properties, were also a strong influence.
Russia is the second largest exporter of crude oil in the world. As part of a series of sanctions against Moscow in retaliation for the war in Ukraine, the United States banned imports of Russian oil, liquefied natural gas and coal, triggering a fuel price shock.
Now in its second month, the war in Ukraine is also reflected in a global rise in food prices, as both eastern European countries are major exporters of commodities such as wheat and sunflower oil.
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Source: CNN Brasil
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