US inflation hits 40-year high

Consumer prices are rising significantly worldwide. In the US, inflation has now reached 8.5 percent, the highest level since 1981. The main reasons for the high figure were the prices for gas, rent and groceries.

Inflation in the US accelerated further in March from a high level. Consumer prices rose 8.5 percent year-on-year, the Department of Labor said in Washington on Tuesday. This is the highest rate of inflation since the end of 1981, in just over 40 years. In the previous month, the rate was 7.9 percent.

According to the ministry, the biggest price drivers were fuel, rents and groceries. Gasoline prices alone rose 18.3 percent month-on-month, accounting for more than half of the increase. The prices of other energy sources also increased significantly. Core prices excluding energy and food rose 6.5 percent year-on-year and 0.3 percent mom.

The US Federal Reserve’s inflation target of two percent has been exceeded for some time. The Fed has already indicated that it will significantly tighten its monetary policy. Interest rate increases of more than two percentage points are expected on the financial markets for this year alone. In addition, the Fed wants to quickly melt down its trillion-dollar balance sheet.

Consumer price inflation reached a new high in 40 years in the United States

Inflation does not let up in the United States: in March, prices continued to rise and reached a new maximum in 40 years, according to data from the Bureau of Labor Statistics published this Tuesday.

The Consumer Price Index rose 8.5% for the year to March, unadjusted for seasonal changes, surpassing February’s high reading of 7.9% and matching a level not seen since December 1981.

Most of the March gain was driven by a rise in gasoline and food prices, which surged as the conflict in Ukraine sent global commodity markets spinning out of control, as well as a spike in electricity costs. living place.

In the past month alone, US gasoline prices rose more than 18%.

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

Energy costs have risen 32% over the past year, while food prices are up 8.8%. It was the biggest increase in food prices since May 1981.

For the month of March, consumer prices rose 1.2% seasonally adjusted. Excluding food and energy, prices rose 0.3%, less than in February, underscoring the importance of commodity prices in the current spike in inflation.

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