Consumer prices jumped a whopping 8.5 percent from a year ago in March


Inflation continued its reign of terror last month, as skyrocketing energy prices and surging housing costs pushed the metric to a fresh 40-year high, NBC News reports.
Consumer prices increased 8.5 percent from a year ago in March, "the fastest inflation rate since 1981," The New York Times reports, and the sixth straight month in which inflation came in above 6 percent, per The Wall Street Journal.
A "substantial chunk" of the jump can be attributed to Russia's invasion of Ukraine and its resulting effect on food and gas prices, the Times and the Journal note. But surging rental rates have also had hand in the problem — rents "climbed 4.4 percent in March year-over-year, compared with 4.2 percent in February," reports NBC News.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
In somewhat better news, however, economists expect the price increases to cool in the coming months, given gas prices have begun to slightly drop.
"These numbers are likely to represent something of a peak," Gregory Daco, an economist at Ernst & Young, told the Times. Researchers are also expecting consumers to pare back their spending on goods, "potentially taking pressure off overburdened supply chains and allowing prices for those products to moderate," the Times writes.
But of course, there's plenty of uncertainty ahead that could alter that projection — the ongoing war in Ukraine and China's COVID-19 outbreak, for example.
Otherwise, the high prices come at a time when "the overall economy is strong and the labor market is tight," the Journal notes.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year