Inflation Spikes To 8.5%, The Highest We've Seen In 40 Years, And It's Probably Not Slowing Down Anytime Soon
If you find yourself shocked at how much it costs to fill up your gas tank these days, you're certainly not alone. Americans all over the country are struggling to pay their bills and put food on the table due to an enormous spike in prices.
We've been witnessing an unprecedented acceleration of inflation over the last few months, and March was our worst month yet. It's no wonder so many families are having difficulties paying for the things that were once affordable.
Inflation Reaches a New 40-Year High of 8.5%
The consumer price index rose 8.5% in March, which officially makes it the highest 12-month increase we've seen since August 1982. A new Labor Department report released Tuesday showed that the CPI spiked 1.2% in February alone. Economists had predicted that we would see inflation around 8.4%, so they were pretty close with their estimations.
The places where we saw inflation most clearly was in gasoline and food, but we also saw a huge increase in housing costs. Over the last year, the cost of fuel has increased by 48%, and in March alone, it rose more than 18%. Food prices rose by 8.8% over the last year, and this was the biggest increase in food prices since 1981. We even saw an uptick in cost of vehicle insurance, airline tickets, and furniture.
Joe Brusuelas, chief economist at RSM US, warned that this is just the beginning."Yes, inflation may soon find its peak. However, that does not imply significant relief is on the way in the near term," he said in a note to his clients. "Price shocks continue to cascade through the U.S. 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."
In the meantime, President Biden and his administration have offered no solutions to this financial crisis that is hitting everyday Americans the hardest. Many people are living day by day or significantly reducing their daily costs in order to provide for their family and children.