On the eve of a key U.S. inflation report, the White House warned that a surge in energy prices caused by the Russia-Ukraine war would send inflation to an unusually high level in March.
The U.S. Department of Labor will announce the consumer price index (CPI) in March before the U.S. stock market opens on Tuesday (12th) Taipei time. The market expects that the annual growth rate of the CPI in March is estimated to reach 8.4%, the highest since the early 1980s. The monthly growth rate Estimated at 1.2%.
White House spokeswoman Jen Psaki said on Monday (11th) that although the US CPI rose sharply in February, it did not fully reflect the increase in oil and natural gas costs caused by the Russian-Ukrainian war, warning that the CPI in March could rise sharply.
Shaqi expects a wide disparity between U.S. core and headline inflation, reflecting turmoil in global energy and food markets.
Inflation data on Tuesday will be boosted by the fact that natural gas prices are sometimes as much as $1 higher than before the Russian invasion of Ukraine, which equates to a 25 percent increase in natural gas prices, she said.
US President Joe Biden has taken steps to lower energy costs, including releasing about 1 million barrels a day from the Strategic Petroleum Reserve (SPR).
Biden said at the end of last month that there is a price to ban Russian oil imports. As Russian crude withdraws from the global market, crude oil supplies will fall and prices will rise. The price surge caused by Putin is hitting Americans.