United States Inflation Hits 7.9% – Highest Level Since 1982

The U.S. inflation rose again in February to break a four-decade high record, which is signaling that the supply and demand imbalance still exists as gas prices are soaring.

The Consumer Price Index (CPI) rose 7.9% over the past 12 months – the fastest since 1982, according to the U.S. Labor Department’s Bureau of Labor Statistics report. The CPI rose 0.8% during the month of February, faster than the 0.6% increase in January.

Core inflation, which excludes volatile food and energy prices, went up 0.5% in February, slower than analysts had expected. It was mainly driven by increases in shelter prices as well as for recreation, household furnishings and airline fares.

Bitcoin (BTC) price held steady at $39,300 after the report was released. Some investors see BTC as a hedge against inflation given its limited supply.

Edward Moya, senior market analyst at Oanda commented:

“Bitcoin declined after both a sixth consecutive hot inflation report and hopes collapsed for an immediate diplomatic resolution between Ukraine and Russia. Bitcoin remains locked into the risk trade and will continue to trade off incremental updates from Ukraine.”

Petrol prices hiked 6.6% in February, accounting for a third of the monthly increase in the overall price index, according to the report. Some analysts have predicted that rising oil prices will push inflation higher, which in turn will give boost for Bitcoin appeciation.

The food-at-home index has gone up a as much as 8.6% since February 2021, the largest yearly increase since 1981, according to the Labor Department. Beef price rose 16% over the same time period.