US consumer prices at the highest since 2012
by Karen Faulkner, Worthy News Correspondent
(Worthy News) – The US Labor Department reported Tuesday that the Consumer Price Index jumped 0.6% in March, the largest increase since 2012, Reuters reports. Economists have explained the spike is due to supply chains struggling to keep up with a surge in demand resulting from the vaccination campaign and from massive fiscal stimulus. Federal Reserve Chair Jerome Powell, among other experts, said higher inflation should be temporary as businesses adapt to demand.
Tuesday’s report also showed a 9.1% spike in gasoline prices and a 0.1% rise in food prices last month. Aside from food and gas, the Consumer Price Index increased 0.3% in March after going up 0.1% in February.
The rise in core CPI has been caused by an increase in rents and the cost of motor vehicle insurance, and higher prices for recreation and household furnishings, Reuters said. However, clothing and education costs decreased.
The government also reported that March saw a rise in producer prices as well. According to Reuters “that was in sync with several business surveys showing an acceleration in cost pressures, largely related to bottle-necks in the supply chain amid worker absenteeism because of the pandemic.”
Manufacturers have had to deal with serious shortages of basic materials, increased commodities prices, and problems in shipping goods, Reuters said.
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