Inflation set a new four-decade high in February, with one expert warning on Fox Business Network that the United States is “headed toward a recession.”
As Fox Business’ Talia Kaplan reports:
Hassett noted on Thursday, shortly after the release of the report, that “wages aren’t keeping up with prices,” which means “real incomes are going down.”
He warned that the next CPI report will reflect “way worse” data.
The Consumer Price Index (CPI) shows the cost of goods are up 7.9% over last year. Rising gas prices accounted for nearly one-third of CPI’s monthly increase.
Despite that, the timing of February’s report meant the data wasn’t affected by the fallout from the invasion of Ukraine. As of today, the war’s consequences have pushed the average price of gas in the U.S. to $4.32/gallon.
“The really, really big price spikes started to happen in March,” Hassett told host Maria Bartiromo on Thursday.
He also noted that there are so many “key things that affect the global economy that have been impacted by this war in Ukraine, like corn.”
Ukraine has been a global source of major agricultural commodities since the fall of the Soviet Union.