Inflation Keeps Rising As Key Measure Hits 40-Year High

The consumer price index hit a 40-year high driven mostly by the rapid increase in the cost of gas. The key inflation measure was up by 7.9% in the 12-month period that ended in February. It is the fastest jump since February 1982, when inflation hit 7.6%.

The CPI rose by 0.8% from January to February.

The energy index increased by 3.5% last month, marking the largest monthly rise since October. Over the previous year, the energy index has risen by 25.6%. As the price of oil skyrocketed amid the Russian invasion of Ukraine, the cost of gas increased by 6.6% in February. It has continued to climb in March, hitting a record high earlier in the week.

The cost of food and rent also ticked up in February, rising by 1% and 0.6%, respectively.

"Thursday's inflation data is continued confirmation that inflation is not transitory and has not peaked. Thursday's data is for February, which does not account for the early March spike in oil prices," Robert Schein, chief investment officer of Blanke Schein Wealth Management, said, according to Yahoo News. "We believe there will be even stronger inflation reports over the coming months, which suggests that the Federal Reserve needs to accelerate its rate hike plans, even with the renewed uncertainty that has emerged from the crisis in Russia and Ukraine."