December 7, 2022

Annual inflation rate hits 41-year high – Tallahassee Reports

On Tuesday morning, the US Bureau of Labor Statistics released the latest inflation information.

The report notes that the index for all elements continued to accelerate, rising 8.5% for the 12 months ending in March, the largest 12-month increase since the period ending in December 1981.

The index for all items less food and energy rose 6.5%, the largest 12-month change since the period ending August 1982. The energy index rose 32, 0% over the past year and the food index rose 8.8%, the biggest increase in 12 months. since the period ending May 1981.

“The big news from the March report was that core price pressures finally seem to be easing,” wrote Andrew Hunter, senior US economist at Capital Economics. Hunter said he believed the March increase would “mark the peak” of inflation as year-on-year comparisons drive down numbers and energy prices fall.

Due to the surge in inflation, real incomes, despite rising 5.6% from a year ago, have still not kept pace with the cost of living. Real average hourly earnings posted a seasonally adjusted decline of 0.8% for the month, according to a separate Bureau of Labor Statistics report.

The Labor Department report shows that the consumer price index for all urban consumers (CPI-U) rose 1.2% in March on a seasonally adjusted basis after rising 0.8% in February.

Increases in the gasoline, shelter and food indexes were the main contributors to the seasonally adjusted increase for all items. The gasoline index rose 18.3% in March and accounted for more than half of the monthly increase for all items; the indices of the other energy components also increased.

Food rose 1% for the month and 8.8% for the year, with prices for goods such as rice, ground beef, citrus fruits and fresh vegetables all posting gains of more than 2% in March. Energy prices rose 11% and 32% respectively while gasoline prices jumped 18.3% on the month, boosted by the war in Ukraine and the pressure it puts on the economy. ‘offer.