Rising gasoline, rent and food prices are forcing households to cut spending elsewhere. Gasoline prices soared in February, topping $4 a gallon this month, following the Russian invasion of Ukraine on February 24.
Shortages of motor vehicles and semiconductors around the world are keeping the prices of automobiles and electrical products high. Prices have increased dramatically across the board.
The price index for personal consumption expenditures (PCE) rose 0.6% in February, after advancing 0.5% in January. In the 12 months to February, the PCE soared 6.4%, its biggest rise since 1982, and after a 6% year-on-year increase in January.
Unemployment aid applications on the rise
In another report released Thursday, the Labor Department said initial claims for state jobless benefits rose by 14,000 to a seasonally adjusted 202,000 in the week ending March 26.
Economists polled by Reuters had forecast 197,000 claims for the latest week. Orders are down from a record 6.149 million in early April 2020.
