March marked the sixth straight month for inflation above a 6% rate, and inflation during the month once again reached a 40-year high. According to the NAHB, inflation is likely to stay high in the coming months as situations abroad threaten more supply chain disruption.
The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 1.2% in March on a seasonally adjusted basis, following an increase of 0.8% in February. Excluding the volatile food and energy components, the “core” CPI increased by 0.3% in March, following an increase of 0.5% in February. The price index for a broad set of energy sources rose by 11.0% in March, and the food index increased by 1.0%.
In March, the indexes for gasoline, shelter, and food were the largest contributors to the increase in the headline CPI. The gasoline index rose by 18.3% in March and accounted for over half of the headline CPI increase. Meanwhile, the food index rose by 1.0% as the food at home index rose 1.5 percent.
During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 8.5% in March, following a 7.9% increase in February. The “core” CPI increased by 6.5% over the past twelve months, following a 6.4% increase in February. It was the largest annual growth since August 1982. The food index rose by 8.8%, the largest annual increase since May 1981, and the energy index climbed by 32.0% over the past twelve months.
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