ALL NEWS

Consumer price inflation hit a new 40-year high in March

Apr 12, 2022, 7:42 AM | Updated: 8:15 am
A clerk weighs dried peppers for a customer inside Grand Central Market on March 11, 2022 in downto...
A clerk weighs dried peppers for a customer inside Grand Central Market on March 11, 2022 in downtown Los Angeles, California. - US consumer prices hit a new 40-year high in February 2022 as the world's largest economy continued to be battered by a surge of inflation, which the fallout from Russia's invasion of Ukraine is expected to worsen. (Photo by Patrick T. FALLON / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)
(Photo by PATRICK T. FALLON/AFP via Getty Images)

 
Originally Published: 12 APR 22 08:31 ET
Updated: 12 APR 22 09:35 ET

(CNN) — America’s inflation problem didn’t abate in March. Prices kept creeping up, hitting a fresh 40-year high, data from the Bureau of Labor Statistics showed Tuesday.

The Consumer Price Index rose 8.5% for the year ended in March, not adjusted for seasonal swings. That outpaced February’s elevated reading of 7.9% and marked a level not seen since December 1981 when the CPI stood at 8.9%. Tuesday’s March data was slightly higher than the 8.4% economists had predicted.

Most of the March increase was driven by a jump in gasoline and food prices, which rose as the Ukraine conflict threw global commodities markets for a loop, as well as an upswing in housing costs.

Last month alone, US gas prices rose by more than 18%. Year-over-year, the price of gas soared by 48%.

Stripping out the more volatile food and energy categories, prices rose 6.5% over the 12-month period ended in March — the biggest jump since August 1982.

Energy costs soared 32% over the last year, while food prices rose by 8.8%. It was the biggest increase in food prices since May 1981.

Even though these more volatile items contributed so much to last month’s price hikes, Tuesday’s numbers also show that inflationary pressures are broad across the economy, said Joe Brusuelas, chief economist at RSM US.

“Yes, inflation may soon find its peak. However, that does not imply significant relief is on the way in the near term,” he said.

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

For the month of March, consumer prices rose 1.2% with seasonal adjustments, the biggest jump since September 2005. Excluding food and energy, prices rose 0.3% — less than in February, underlining how big a factor commodity prices are in the current inflation spike.

Airline tickets, furniture, medical care and motor vehicle insurance also increased in price.

“The good news here is that core inflation slowed on a month-on-month basis,” wrote Brian Coulton, chief economist at ratings agency Fitch, in emailed comments. Most of that decline can be attributed to falling car prices, he added.

This is a developing story. It will be updated

The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

Today’s Top Stories

All News

Idaho State Police are investigating a motorhome crash Sunday afternoon that injured two people fro...
Mark Jones

Motorhome crash in Idaho sends two Utahns to the hospital

Two people from Centerville were injured Sunday in a motorhome crash in Bannock County, Idaho, according to the Idaho State Police.
1 day ago
Intermountain milestone 1 million tests...
Mark Jones

Intermountain Healthcare announces plans to build hospital in Ephraim

Intermountain Healthcare has plans to develop 35 acres of land in the Ephraim area into a new hospital.
1 day ago
On Monday, David Rice was named president and CEO of Associated Food Stores. Photo credit: Associat...
Mark Jones

Associated Food Stores name David Rice as its new CEO/President

On Monday, Associated Food Stores named David Rice as its new CEO and president.
1 day ago
Salt Lake City Police responded to five different incidents involving weapons on Monday, Sept. 26, ...
Mark Jones

Salt Lake City Police respond to five different incidents with weapons

Salt Lake City Police responded to five different incidents Monday involving a weapon.
1 day ago
At 5800 So. 1400 W. you find an irrigation canal that attracts  a lot of waterfowl, seagulls and ev...
Mark Jones

Officials warn of additional cases of avian influenza

With the fall migration of wild waterfowl, state officials are warning bird owners to be prepared for additional cases of Highly Pathogenic Avian Influenza or avian influenza.
1 day ago
Strawberry Reservoir...
Devin Oldroyd

Fatal crash near Strawberry Reservoir closes SR-40

One person is dead and another injured following a car accident near Strawberry Reservoir. SR 40 is currently closed in both directions at milepost 40.
1 day ago

Sponsored Articles

a worker with a drill in an orange helmet installs a door in the house...
Price's Guaranteed Doors

Home improvement tip: Increase the value of your home by weatherproofing doors

Make sure your home is comfortable before the winter! Seasonal maintenance keeps your home up to date. Read our tips on weatherproofing doors.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
A paper reading IRS, internal revenue service is pictured...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
Prescription opioids can be disposed of during National Prescription Take Back Day...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
Consumer price inflation hit a new 40-year high in March