U.S. Inflation Reached 7.9% (YoY) in February 2022

The United States Bureau of Labor Statistics reported a 0.8% inflation rate in February 2022 compared to the previous month (month-to-month/m-to-m). Compared to February 2021, the inflation rate last month reached 7.9% (year-on-year/YoY).

Rising prices of energy commodities, food, and services have driven United States inflation to its highest level in 40 years. Disruptions in the supply of energy and food commodities could exacerbate inflation in the United States.

Last month, the food inflation rate reached 1% (m-to-m) or 7.9% (YoY). Specifically, food at home inflation reached 1.4% (m-to-m) or 8.6%, and food away from home inflation was 0.4% (m-to-m) or 6.8% (YoY).

The energy inflation rate in February 2022 was 3.5% (m-to-m) or 25.6% (YoY). Specifically, energy commodities experienced inflation of 6.7% (m-to-m) or 37.9% (YoY), with gasoline of all types experiencing inflation of 6.6% (m-to-m) or 38% (YoY).

The high inflation rate has fueled speculation that the US central bank (The Federal Reserve/The Fed) will aggressively tighten its monetary policy (tapering) starting this month.

For information, the Fed's benchmark interest rate is currently at its lowest level of 0.25%. The Fed's Board of Governors is scheduled to hold a Federal Open Market Committee (FOMC) meeting on March 15-16, 2022.