The White House announced Monday that it expects the rate of inflation for the month of March in the United States, which will be revealed today, to be “extraordinarily high”, due to the high prices due to the attack on Ukraine.
“We expect consumer price inflation in March to be extraordinarily high due to the high prices caused by Russian President Vladimir Putin,” US presidential spokeswoman Jen Psaki said during her daily press conference.
She added that the White House expected a “significant difference” between the general rate of inflation and the “core” rate of inflation, which excludes energy and oil prices, which have risen since the start of the Russian attack on Ukraine.
President Joe Biden plans to speak on the subject Tuesday in Iowa during a visit that will focus specifically on the issue.
Inflation was already high in the United States before exacerbated in February with the start of the attack on Ukraine.
Consumer prices rose by 7.9 percent in one year, an unprecedented level since 1982, according to the consumer price index, on the basis of which pensions in particular were adjusted.
The rate of inflation is expected to accelerate in March, which will be the first month to give a full picture of the repercussions of the war in Ukraine on prices in the United States.
The one-month inflation rate is expected to be 1.2 percent, compared to 0.8 percent in February. As for the “core” inflation rate, it is expected to remain unchanged at 0.5 percent, which confirms that the rise in prices is concentrated in the energy and food sectors.
For their part, economists warn that inflation will not slow down for several months.
To counter this, the US Federal Reserve began raising key interest rates in mid-March to increase the cost of borrowing, which would slow consumption and investment to ease pressure on prices.
The US Central Bank confirmed that it will continue to tighten monetary policy in the coming months.
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