Inflation is killing America… Has the magic of sanctions been turned on the magician?

Although Russia is the target of US and Western sanctions due to the impact of the Ukrainian war that has erupted since February 24, these sanctions, as analysts and experts confirm, have a double-edged sword with great negative repercussions as well on the countries imposing the sanctions and their economies, especially the United States, which is witnessing record inflation rates are the highest decades ago.

And according to the Consumer Price Index issued by the US Department of Labor a few days ago, prices rose by 8.5 percent over one year, and 1.2 percent over one month only last March, after increasing by 0.8 percent in February, which shows the growing negative impact of the war. Ukrainian in this regard.

US official figures indicated that fuel prices alone rose during the month of March, by 18.3 percent compared to February, and thus represented more than half of the amount of inflation, and that housing and food prices also contributed to the rise in inflation rates.

However, the so-called core inflation, which does not include energy and food prices, slowed from 0.5% in February to 0.3% in March, but it accelerated over the course of one year to reach 6.5%, the highest level since August 1982, that is, over a period 40 years old.

And to talk about the details of this escalating inflation crisis that is hitting the United States and its repercussions on the American economy, Ahmed Al-Khatib, an analyst and economic expert, said in an interview with Sky News Arabia: “Inflation in the United States has reached about 9 percent, which is a large percentage that has not been recorded for more than 4 years. Decades, and this existing crisis situation leads to fear of greater rises in inflation rates, which negatively and sharply affects the cost of living, especially since the rise in wages and salaries is less than the rise in inflation levels, which burdens American citizens with heavy living burdens.

Regarding the most prominent factors of this record inflation, Al-Khatib says: “At the top of these factors is the rise in oil and gas prices and the resulting rise in the prices of fuels in general and gasoline in particular, whose prices in America have reached historical levels.”

The economic analyst goes on to explain the background and motives of this crisis, by saying: “In addition to the fact that with the return of the economy to recovery and rotation after the closures of the Corona pandemic, there is great pressure on demand, amid problems in the supply and supply chains, as the availability of products and raw materials necessary for industry. And consumption is not secured quickly and smoothly, due to the delay in manufacturing and its inability to meet demand due to the interruption during the past two years of the pandemic, as well as due to the high cost of transportation due to the high prices of gasoline and fuels in general.”

Consequently, prices and food and energy commodities continue to rise, the economic analyst adds, adding: “In this context, the US Federal Reserve is trying to limit the rise in inflation and curb the possibilities of its further escalation, by discussing a package of options and measures, but there is a fear that if, for example, an accelerated price hike is approved. The benefit of slowing growth in the American economy, where the unemployment rate is declining and employment opportunities have strengthened, and there is a noticeable growth and recovery in the business sector and job creation, after the economic downturn that accompanied the outbreak of the new Corona virus, and thus the US Federal “.

With the continuation of the Russian-Ukrainian war, which worsens matters and complicates the choices of American decision-makers, Al-Khatib adds, “with its dangerous effects on the global and American economy, of course, which no one knows when this war will end or how long it will take, and for all of this, its effects escalate on the United States.” Especially in the economic context, and there will be a greater rise in inflation rates, and the Federal Reserve may resort to this during its next meeting to raise the interest rate by half a point or less.”

The White House, before the release of these Department of Labor statistics, had expected the inflation rate for March in the United States to be “extraordinarily high”, announcing a series of initiatives to increase the use and production of biofuels in the hope of reducing prices at filling stations, which is a high Their prices are the most prominent indicator of inflation in the country.