U.S. Inflation Reaches 8.5% in March, Highest in More Than 40 Years

Inflation rose to a new 40-year high with the consumer price index leaping 8.5% annually, the US Labor Department revealed. 

According to data released by the US Bureau of Labor Statistics (BLS), the 12-month increase is the fastest pace since December 1981.

The primary drivers of the increase, according to the BLS, were increases in gasoline, shelter, and food prices.

In March, gasoline prices increased to 18.3 percent, accounting for more than half of all monthly rises.

According to AAA, the national average price of a gallon of gas is now $4.11, up from $2.86 a year ago.

White House Press Secretary Jen Psaki told reporters on Monday that talks on implementing a gas tax holiday are on the table but “it remains an option under consideration”. 

An increase in other energy component indexes was also reported. 

The food index and home index were at 1.0 percent and 1.5 percent, respectively. 

Meanwhile, the index for used cars and trucks fell to 3.8 percent over the month. 

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