Key Inflation Gauge Sets 40-Year High As Gas And Food Prices Soar

An inflation gauge closely monitored by the Federal Reserve spiked 6.4% last month — the largest year-over-year increase since 1982.

An inflation gauge that is closely monitored by the Federal Reserve jumped 6.4% in February compared with a year ago, with sharply higher prices for food, gasoline and other necessities squeezing Americans' finances.

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The figure reported Thursday by the Commerce Department was the largest year-over-year rise since January 1982. Excluding volatile prices for food and energy, so-called core inflation increased 5.4% in February from 12 months earlier.