(Bloomberg) — U.S. consumer price gains accelerated in February to a fresh 40-year high, consistent with rapid inflation that’s become even more pronounced following Russia’s invasion of Ukraine. 

According to Labor Department data, the consumer price index rose from last year after a 7.5% increase in annual growth in January. Inflation gauge, which is closely followed, rose from a month ago to February, reflecting rising fuel, food, and shelter prices.

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According to Bloomberg Survey, economists projected that the CPI would rise by 7.9% compared with a year earlier and 0.8% in January. 

The core price, which excludes volatile foods and energy components was higher than a month ago and a year earlier.

The data illustrate the extent to which inflation was tightening its grip on the economy before Russia’s war brought about a spike in commodities, including the highest retail gasoline price on record. While most economists expected that February would mark the highest annual inflation level, the conflict will likely lead to even greater inflation in the months ahead.

The Federal Reserve will raise interest rates for the first-time since 2018 next week to combat rising price pressures. At the same time, the geopolitical situation adds uncertainty to the central bank’s rate hiking cycle over the coming year.

Fed officials may be more aggressive if there are energy price shocks that lead to persistent and higher inflation. However, they could also take a cautious approach to sinking consumer sentiment or declining wages as these factors can impact growth.

Petroleum prices rose 6.6% in February compared to the month before and contributed almost three quarters of the CPI’s monthly rise. Some of that may reflect energy price spikes resulting from the first days of Russia’s invasion during the last week of the month. CPI will provide a more detailed picture of the impact. 

According to American Automobile Association data, this month’s retail price for regular-grade gasoline increased by 19.3% to $4.32 per gallon.

According to the CPI report, food prices increased 1% over the previous month. This is the highest increase in price since April 2020.

While the war’s full impact on the U.S. economy remains unclear, soaring costs of oil, grains and metals are likely to feed through to other commodities and ultimately consumer prices. Biden’s administration banned Russian oil imports to the U.S. on Tuesday, which will increase energy prices.  

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