US monthly consumer prices increased by the most in 16-1/2 years in March as Russia’s war against Ukraine caused the price of oil to surge.
The consumer price index surged 1.2 percent last month, the biggest monthly gain since September 2005, the Labor Department said yesterday. The CPI advanced 0.8 percent in February. It is expected to cement the case for a 50 basis points interest rate hike from the Federal Reserve next month.
In the 12 months through March, the CPI rose 8.5 percent. That was the largest year-on-year gain since December 1981 and followed a 7.9 percent jump in February.
According to AAA, gasoline prices on average soared to an all-time high of US$4.33 per gallon in March. While gasoline was the main driver of inflation last month, food and services such as rental housing are contributive factors. The US has banned imports of Russian oil, liquefied natural gas and coal as part of a range of sanctions against Moscow for its invasion of Ukraine.
