the past week has jumped by about 60 cents per gallon to an average $4.31 nationally, according to AAA. Oil is off its highs but is still trading well above $100 per barrel. (2022, Domm).
Other commodities like wheat, palladium and nickel have also moved. Russia is a major commodities exporter, and sanctions on its financial sector by the U.S. and allies have created concerns about supply scarcity. The Fed was under pressure from rising inflation to raise interest rates even before the Ukraine conflict sent the price of oil and raw materials higher. Supply chain disruptions were behind some rising prices, and a strong U.S. economy with solid growth and a healthy labor market was adding to pressures on prices. The Fed focuses on core, but food was up 1% last month. That’s a huge number,” Schumacher said. Energy was the biggest contributor to price gains, up 3.5% for February, accounting for about a third of the headline gain. In March of 2022, consumer inflation could be close to 9% or more, one economist said. Rising oil prices have created an even bigger inflation problem for the Fed, and they ultimately could be a big clii
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