Consumer Prices Increase 8.5% To Record Highs In March
Inflation continues to soar, as rates reached a new high last month, according to the Bureau of Labor Statistics report on Tuesday.
The Consumer Price Index for 8.5% from March 2021, which surpassed economists’ forecasted 8.4% jump.
Last December, President Joe Biden said inflation was at its peak at 6.8%. Although inflation was already topping out at numbers that had not been seen in 40-years, the Russia-Ukraine conflict pushed the number upwards. Press Secretary Jen Psaki blamed the elevated inflation on what the White House calls, “Putin’s price hike.”
The Biden administration said supply-chain issues are another factor playing to rising inflation rates.
Conservatives continue to blame Biden’s handling of the economy.
In March, gas prices rose 18 percent. That number is up 48 percent from a year ago. Food, shelter and airline ticket prices also increased.
“Fallout from Russia’s invasion was all over the ugly March CPI report,” said Mark Zandi, who is a chief economist at Moody’s Analytics. “Prior to Russia’s aggression, oil prices were headed lower and overall inflation was peaking as pandemic-scrambled supply chains were slowly, but steadily, sorting themselves out.”
“But now with oil and other commodity prices up, a lot, the acceleration in inflation has more to run,” the economist added. “China shutting down large parts of the country in an effort to contain COVID infections also threaten renewed supply-chain problems, more shortages, and higher prices.”
Fallout from Russia’s invasion was all over the ugly March CPI report. Prior to Russia’s aggression, oil prices were headed lower and overall inflation was peaking as pandemic-scrambled supply chains were slowly, but steadily, sorting themselves out.
— Mark Zandi (@Markzandi) April 12, 2022