The highest level of inflation in over 40 years is hitting Americans hardest in areas where it’s difficult to make cuts.
There are three factors that could lead to inflation which include demand-pull inflation, cost-push inflation and built-in inflation.
A 48% rise in gas prices. A staggering 35% jump in the cost of used vehicles. Inflation has climbed to its highest level in more than 40 years, and it’s hitting Americans hardest in areas where it’s difficult to make cuts: gas, food and utilities. The Labor Department said this week that its consumer price index jumped 8.5% in March from 12 months earlier, the sharpest year-over-year increase since 1981.
Prices have been driven up by bottlenecked supply chains, strong consumer demand and disruptions to global food and energy markets worsened by Russia’s war against Ukraine. Even if you toss out food and energy prices — which are notoriously volatile and have driven much of the price spike — core inflation jumped 6.5%.Gasoline: 48%
The March inflation numbers were the first to fully capture the surge in gasoline prices that followed Russia’s invasion of Ukraine on Feb. 24. Moscow’s attacks have triggered far-reaching Western sanctions against the Russian economy and disrupted food and energy markets. The average price of a gallon of gas — $4.10 as of Tuesday — is up 43% from a year ago, though it's dipped in the past couple of weeks.
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