Inflation hit a new 40-year high in March as US consumer prices rose 8.5% from a year ago, the Labor Department said on Tuesday.
The consumer price index, which tracks a basket of goods and services, rose 1.2% in March after rising 0.8% in February, showing that inflation accelerated last month. Underlying inflation, which eliminates volatile food and energy costs, rose 6.5% from a year ago.
Nearly half of the latest rise in inflation comes from rising gas costs, which rose 18% in March to an average of $ 4.33 a gallon. Food and accommodation costs also rose, with air fares, health and car insurance and furniture contributing to the increase.
More positively for consumers, the prices of used cars and trucks, one of the main drivers of inflation last year, fell by 3.8% in March.
The report comes as the Biden administration announces a push to cut gas prices by giving up environmental requirements to gasoline sold in the summer and releasing oil reserves.
Cost increases are the most pressing issue for many Americans, a CBS News poll this week meeting. Two-thirds of respondents said raising prices is a challenge for their families, with about the same number reporting reduced travel, entertainment or driving.
This is a developing story.
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