Inflation makes biggest annual jump in 40 years

The consumer price index rose 8.5 percent in March from 12 months earlier, the Labor Department said Tuesday — the biggest year-over-year increase since 1981. Experts blame supply chain problems, increased consumer demand, and the Russia-Ukraine war for driving up energy and food prices. However, some economists think inflation might be peaking. The core inflation rate, which excludes food and energy, rose just 0.3 percent in March, the smallest increase in six months.

What’s affected? Energy jumped the highest at 48 percent since last year. Used and new car costs and food followed. Gas went from an average of $2.86 per gallon this time last year to $4.00, according to AAA. To help with energy costs, President Joe Biden announced Tuesday the government will allow summer sales of auto fuel that contains 15 percent ethanol, which is usually banned from June to September because of environmental concerns. The administration hopes the change will cut the price of gasoline by an average of 10 cents per gallon, mostly in the Midwest, the South, and Texas. 

Dig deeper: Read Emily Whitten’s article in WORLD Magazine on eating on a budget.