Consumer prices rose 8.5% in March not adjusted for seasonal swings, an increase slightly higher than expected and the highest since 1981, according to the Labor Department.
The expected report reflected price increases not seen in the U.S. since the stagflation that started in the late 70s. The consumer price index (CPI), which measures a wide-ranging basket of goods and services, was slightly above Dow Jones estimate for 8.4%. The core inflation rose 0.3% for the month, less than the 0.5% estimate.
Excluding food and energy, the CPI increased 6.5% in line with the expectation. Food rose 1% for the month and 8.8% over the year. Boosted by Russia´s invasion to Ukraine energy prices were up 11% in March and 32% over the year, as gasoline prices rose 18.3% for March.
The war in Ukraine, international surging oil prices, the new China locking down and further disruptions to supply chains will keep impacting inflation all over the world in the months to come.
To fight inflation the Federal Reserve started raising interest rates this year and is expected to continue doing so into 2023. Despite a recession is not excepted, many on Wall Street are raising the probability of a downturn.