May 19, 2022

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Consumer price inflation hits 40-year high in March

Consumer price inflation hits 40-year high in March

New York
CNN Business

The problem of inflation in America He did not hide in March. Prices continued to rise, reaching a 40-year high, according to data from Bureau of Labor Statistics Show Tuesday.

The consumer price index rose 8.5% for the year ending in March, not adjusted for seasonal fluctuations. that outperformed February’s high reading at 7.9% And It represents a level not seen since December 1981 when the CPI was 8.9%. Tuesday’s data was slightly higher than economists had expected, at 8.4%.

Most of the increase in March was driven by a jump in gasoline and food prices, which rose as The conflict in Ukraine threw global commodity markets into a loopas well as a boom in housing costs.

In the last month alone, gas prices in the US have risen more than 18%. On an annual basis, the price of gas is up 48%.

Excluding the more volatile food and energy categories, prices rose 6.5% during the 12-month period ending in March – the largest jump since August 1982.

Energy costs are up 32% compared to last year, while food prices are up 8.8%. It was the largest increase in food prices since May 1981.

Although these more volatile elements contributed much to the price rally last month, Tuesday’s numbers also show that inflationary pressures are broad across the economy, said Joe Brusolas, chief economist at RSM US.

Yes, inflation may peak soon. However, that doesn’t mean there is much relief on the way in the near term.

“Price shocks continue to seep through the US economy. The risk of further oil and energy shocks due to the war in Eastern Europe and the possibility that the European Union may choose to cut off natural gas and oil imports from Russia… will significantly disrupt global oil prices,” Brusolas said in a note to clients. Big.

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For the month of March, consumer prices rose 1.2% with seasonal adjustments, the largest jump since September 2005. Excluding food and energy, prices rose 0.3% – less than they were in February, underlining how much commodity prices factor into the current rise in inflation.

Prices for airline tickets, furniture, medical care and auto insurance also increased.

“The good news here is that core inflation has slowed month-on-month.” Brian Colton, chief economist at rating agency Fitch, wrote in comments via email. He added that most of this decline can be attributed to the decline in car prices.

This is an evolving story. It will be updated