{UAH} ALLAN BARIGYE A RWANDAN USED THIS FORUM TO SELL CRAP AGAINIST TRUMP FOR FOUR STRAIGHT YEARS WE HAVE THE NUMBERS TO PROVE IT WAS CRAP

Inflation surges 8.5% in March to highest level since 1981

By Thomas Barrabi

April 12, 2022 8:48am 

Costly inflation climbed even higher to a new four-decade high of 8.5% in March as the Russia-Ukraine war contributed to a record surge in gas prices and exacerbated existing supply chain disruptions — forcing Americans to pay even more for basic goods.

The latest uptick in March marked the highest annual rate of increase of inflation since December 1981, according to data from the Bureau of Labor Statistics released Tuesday.

On a monthly basis, the Consumer Price Index — a closely tracked inflation gauge that details the costs of goods and services — rose 1.2% from February to March. 

Labor Department officials said price increases for gasoline, shelter and food were the largest contributors to inflation. The gasoline price index rose 18.3% in March.

Excluding volatile food and gas prices, the CPI still rose 6.5% year-over-year.

The March report was the first to fully reflect the impact of Russia's invasion of Ukraine, which prompted a wave of crippling economic sanctions — including a US ban on Russian energy imports.

Gas prices hit an all-time high in March.The Washington Post via Getty Im

 

The Consumer Price Index jumped to its highest level since 1981.Bloomberg via Getty Images

The European Union is under pressure to enact a similar step due to its heavy reliance on Russian gas, with ongoing shipments serving as a key source of revenue for the Kremlin.

The March reading came in slightly higher than expected. Economists had expected the CPI to jump 8.4% compared to the same month one year earlier.

National average gas prices hit an all-time high of $4.33 on March 11, though they have since declined, according to AAA data.

As of Tuesday, the national average price hovered near $4.10 per gallon. But prices are still much higher than they were on the same day one year earlier, when a gallon of gas cost about $2.86.

Russia's invasion of Ukraine has further roiled the global supply chain.Sputnik/AFP via Getty Images

 

The government's report also showed that inflation rose 1.2% from February to March, up from a 0.8% increase from January to February.

The alarming inflation data surfaced as the Federal Reserve ramps up its efforts to return to normal market conditions following extraordinary measures taken in response to the COVID-19 pandemic.

The Fed enacted its first interest rate hike in three years last month and is expected to raise its benchmark rate several more times throughout the year — with some experts suggesting the next increase could be larger than the quarter-percentage-point hike enacted in March.

The average US household spent an extra $327 in March due to inflation, according to calculations by Ryan Sweet, a senior economist at Moody's Analytics. That's up from roughly $297 per household in February, when the Consumer Price Index jumped 7.9%.

"The Fed is behind the curve on inflation and the labor market is extremely tight," Sweet told The Post. "Therefore, tightening monetary policy to tame inflation without causing the unemployment rate to increase will be extremely difficult."

Surging inflation has effectively erased strong wage increases for workers in what has been a historically tight labor market, with unemployment currently hovering below 4%.

The White House has blamed Russia's invasion of Ukraine for the recent uptick in gas prices.The Washington Post via Getty Im

"Inflation has continued to accelerate in recent months and with the higher gasoline and food prices stemming from the war in Ukraine, the worst is likely still to come," Bankrate chief financial analyst Greg McBride said.

White House press secretary Jen Psaki acknowledged the CPI report was likely to show high inflation — while laying the blame on Russian President Vladimir Putin"We expect March CPI headline inflation to be extraordinarily elevated due to Putin's price hike, and we expect a large difference between core and headline inflation reflecting the global disruptions in energy and food markets," Psaki said.

Republican lawmakers have pushed back on the White House's effort to pin record gas prices on Russia's invasion, arguing President Biden's energy problems are most responsible for the situation.

EM         -> {   Gap   at   46  } – {Allan Barigye is a Rwandan predator}

On the 49th Parallel          

                 Thé Mulindwas Communication Group
"With Yoweri Museveni, Ssabassajja and Dr. Kiiza Besigye, Uganda is in anarchy"
                    Kuungana Mulindwa Mawasiliano Kikundi
"Pamoja na Yoweri Museveni, Ssabassajja na Dk. Kiiza Besigye, Uganda ni katika machafuko" 

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