WASHINGTON (Realist English). Over the past year, inflation in the United States has grown at the fastest pace in more than 40 years. Rising prices for food, gasoline, housing, and other basic necessities are hitting American consumers and nullifying wage increases.
The U.S. Department of Labor reported that the consumer price index, which measures a wide-ranging basket of goods and services, jumped 8.5% from a year ago on an unadjusted basis, above even the already elevated Dow Jones estimate for 8.4%. March’s headline reading in fact was the highest since December 1981.
Prices rose due to disruptions in supply chains, sustained consumer demand, as well as disruptions in global food and energy markets, exacerbated by the economic war of the West, declared on Russia due to the special operation in the Ukraine.
The report says that inflation rose by 1.2% from February to March, compared with an increase of 0.8% from January to February.
According to the American Automobile Association, the average price of a gallon of gasoline — $4.10 — has increased by 43% compared to 2021, although it decreased over the past couple of weeks.
The price hike on energy carriers led to an increase in transportation costs for the delivery of goods and components, which, in turn, contributed to higher prices for consumers.
As of now, the US economy as a whole remains stable. Unemployment is at a 50-year low, and the number of vacancies is at an all—time high. Nevertheless, the rapid growth of inflation and its impact on the daily lives of Americans pose a political threat to US President Joe Biden and the Democratic Party, who are seeking to maintain the control of the Congress in the midterm elections in November this year.