Causes.com
| 4.12.22
Inflation Surged to a New 40-Year High of 8.5% in March
How do you feel about the rise in consumer prices?
What’s the story?
- The Bureau of Labor Statistics reported Tuesday that the all items consumer price index rose by 8.5% in the last 12 months through March ― the highest rate of inflation since a comparable period ending in December 1981 and more than four times the Federal Reserve’s target rate of 2%.
- March marks the fourth consecutive month with inflation running at 7% or higher during the preceding 12-month period, as inflation continues its rise from 7% in December to 7.5% in January and 7.9% in February.
- Month-to-month consumer prices rose by 1.2% in March on a seasonally adjusted basis. That’s an acceleration from the 0.8% hike measured in February and the 0.6% increase in January.
What goods did prices increase the most for?
- Here’s a rundown of the common items which have seen the largest price increases due to inflation year-over-year (notable monthly changes in parentheses):
- Fuel oil increased 70.1% over the last 12 months (including a 22.3% spike from February).
- Gasoline of all types increased 48% over the last year (19.8% from February).
- Used cars and trucks increased 35.3%.
- Lodging away from home increased 25.1% (up 6.7% from February).
- Propane, kerosene, and firewood increased 24.4%.
- Utility gas service (piped) increased 21.6%.
- Citrus fruits increased 19.5%.
- Beef and veal increased 16%.
- Furniture and bedding increased 15.8%.
- Pork increased 15.3%.
- Chicken increased 13.4%.
- Milk increased 13.3%.
- New vehicles increased 12.5%.
- Lettuce increased 12%.
- Coffee increased 11.2%.
- Electricity increased 11.1%.
- Fish and seafood increased 10.9%.
- Fresh fruits increased 10.2%.
- Tools, hardware, outdoor equipment, and supplies increased 10.8%.
- Cereal and bakery products increased 9.4%.
- Men’s and boys’ apparel increased 7.8%.
- Apples increased 7.2%.
- Women’s and girls’ apparel increased 6.3%.
- Financial services increased 6.2%.
- Fresh vegetables increased 5.9%.
What is inflation and how is it measured?
- Inflation is a measure of the decline of purchasing power for a given currency over time, which in the U.S. means that a dollar effectively buys less than it did in prior periods because prices rise.
- The most common way inflation is measured is through the Consumer Price Index for Urban Consumers (CPI-U), which shows changes in prices paid for a “representative basket of goods and services” by an urban consumer group representing about 93% of the U.S. population.
- CPI-U includes food, energy, commodities like cars and clothes, plus services such as rent and healthcare; and the relative importance of each to the overall basket shifts according to its proportion of all spending in a given month. This overall number is known as “headline” CPI, although economists also track a metric called “core” CPI which excludes food and energy because those categories tend to have more volatility.
- The Federal Reserve aims to keep inflation at about 2% as part of its dual mandate of promoting stable prices and full employment, as a modest amount of inflation is viewed as an optimum policy in terms of encouraging consumer spending without penalizing savings and investment. When inflation starts to get out of control, the Fed raises interest rates to encourage more savings and less consumer spending.
— Eric Revell
(Photo Credit: iStock.com / sefa ozel)
The Latest
-
IT: Battles between students and police intensify, and... 💻 Should we regulate AI access to our private data?Welcome to Thursday, May 2nd, listeners... The battle between protesters and police intensifies on college campuses across the read more... -
Should U.S. Implement Laws Protecting Private Data from AI Access?Artificial intelligence is rapidly integrating into our everyday lives, transforming the way we work, live, and interact with read more... Artificial Intelligence -
Protests Grow Nationwide as Students Demand Divestment From IsraelUpdated May 1, 2024, 11:00 a.m. EST The battle between protesters and police has intensified on college campuses across the read more... Advocacy -
IT: Rumors spread about ICC charging Israel with war crimes, and... Should states disqualify Trump?Welcome to Tuesday, April 30th, friends... Rumors spread that the International Criminal Court could issue arrest warrants for read more...
Climate & Consumption
Health & Hunger
Politics & Policy
Safety & Security
Fuel costs are driving inflation. Not only the price at the pump but the cost built into all products from buying raw materials, producing product and then transporting it to market. Fuel oil increased when Russia invaded Ukraine. OPEC controls 50% of global oil production but is unwilling to ramp up crude production despite rising prices of oil saying no one member has enough capacity to replace Russian oil. OPEC Secretary General Mohammed Barkindo said at CERAWeek Conference (3-7-22) hosted by S&P Global in Houston that OPEC plans to maintain its oil production schedule and not increase volume because they have no control over geopolitics and plan to stay on course of previously agreed to plans. Iraq's oil minister, Ihsan Abdul Jabbar said that the OPEC members are concerned that rising oil prices will drive consumers to buy electric vehicles (EV). Norway's Equinor ASA sees a drop-off in oil demand, based on current trends, for oil which will drop 47% between now and 2050 due to improvements in vehicle fuel efficiency and EVs. What is needed is for Congress to look at how to accelerate this transition so that American’s are investing money into the transition and not just at the pump, and/or the President to invoke the DPA to do this.
Some areas of the US are adapting faster than others. Our office turned all the parking spaces close to the building (normally reserved for executives) into EV charging stations to encourage people to buy EVs to get better parking spaces. Our residential complex has 4 charging stations that are always busy so have ordered 10 more. Why can’t Congress offer a tax package to encourage office & residential buildings to install EV charging stations, and for individuals to buy EVs using the tax credit as a down payment? Let’s accelerate the transition, make OPECs worst fears come true and let them sit on their oil!
https://www.spglobal.com/en/research-insights/articles/daily-update-march-11-2022
https://www.businessinsider.com/oil-producers-fear-high-prices-will-lead-people-buy-evs-2022-3
https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/ev-impact-electric-vehicle-growth-to-sever-oil-from-key-market-66514990
https://tradingeconomics.com/united-states/inflation-cpi
You can't blame it all on the president (present or past), the pandemic, work force shortage, or Russia...not when corporations are taking in record profits!
https://www.businessinsider.com/how-measure-inflation-raise-prices-corporate-profits-supply-chain-2022-2
https://abcnews.go.com/Business/wireStory/inflation-bites-corporate-profits-remain-flush-83763570
If someone was injured or ill and needed an operation with an extended hospital stay, they would be greatly indisposed, limited in what they could do until they were discharged and had the time to recover. Most would choose to ensure a better quality of life after the disease or injury had been corrected - the alternative being increasing pain and prolonged suffering.
The world needed to perform an operation to excise the putin from the world’s body politic. That operation is underway and the body will not fully recover until the operation is successfully completed and there is time for global recovery - and the world of nations can look forward to a restored and improved ‘quality of life’.
Yes, we are suffering from increased inflation as the rest of the world is due to pandemic damaged complex interconnected international supply lines and the ability of a few mega players and large corporations to set prices. This will pass.
On top of this inflationary pressure, we have the shock to the energy market due to the world’s decision to hold the putin to account for his ego-driven war with Ukraine and his clear war crimes against the Ukrainian civilian populace - which are clearly an attempt to erase the Ukrainian people.
This illness to the world of nations will only get worse if the putin is permitted to succeed. The pain and suffering of delaying this operation may be unbearable, even to the point that the world body politic may not survive; leaving the world’s populace left to become mere pawns serving competing autocrats.
The current added inflationary pressure is due to the requisite disruption of Russian energy to block the putin’s ability to fund his war of id. Supplies need to be rebalanced, big oil needs to stop profiteering and expand production. Alternate means to get natural gas distributed are needed quickly, in particular for those European nations which had become dependent upon Russian natural gas.
The uncertainties inherent with any major military conflict also has every link in the supply chains raising their prices to cover perceived risks- and this greatly effects the price of everything else.
This too will pass if the operation is successful and the putin no longer has a seat on the world stage. If the operation is not successful, world suffering will just keep increasing.
It's really easy for the extreme right and the GOP to complain about inflation after they left the economy in a shambles in 2020 and had no policy to fix it. I'm listening for any signs of a policy of what they would be doing right now to fix inflation if they were in power, but all I hear is handouts to the wealthy and the fossil fuel industry, which is their usual playbook. The GOP has no plan, no policy, and does not deserve another chance to run our country.
Inflation has been caused by the pandemic and corporation price-gouging their products to profit off of it, and it is happening globally, not just in the U.S. In fact, inflation in the U.S. is actually less than most other developed countries right now, mostly thanks to the significant actions President Biden has taken to mitigate its worst effects from signing executive orders expanding and streamlining supply-chains to releasing millions of barrels of oil from America's petroleum reserves. Putin's idiotic war with Ukraine has only worsened inflation and supply-chain issues recently, and oil companies are still sitting on 9000 leases without producing oil from them! If the President could actually control prices, then believe me, there would be no inflation right now, but inflation is being driven by global forces that no President can unilaterally control. Fortunately, inflation appears to be peaking at least.
International Monetary Fund (IMF) diwngraded growth projections in the latest World Economic Outlook estimates:
1) global GDP will grow 3.6% in 2022 (down from Jan 2022 estimate of 4.4% and 2021 actual 6.1% GDP).
2) due to economic damage from the war in Ukraine impact on global output and inflation due to drastic fuel and food prices increases
3) described inflation as a “clear and present danger” to persist for longer in many countries and central banks need to hike interest rates but not so much it hurts economic growth.
Senate needs to finish confirmations for Federal Reserve board as it needs to be operating on all cylinders to steer through this global inflationary crisis.
https://www.forbes.com/sites/sergeiklebnikov/2022/04/19/imf-sounds-alarm-on-significant-slowdown-as-ukraine-war-and-inflation-slam-global-economies/
corporate profits are up- stock buy backs and big raises for C.E.O.s are the norm....its not inflation, it price goudging...this is capitalism at its most unbridaled. its not a bug in the system, its a feature.
The inflation is very frustrating and is outpacing many of the raises people got from their jobs during Covid, so I hope it cools off soon. However, with the labor and housing markets still booming, a war in Ukraine, and shutdowns in China, I'm not sure there's much that anybody can do about inflation other than hope that rising interest rates will help. I also really hope that during this time we can find ways to turn away from fossil fuels due to high prices and find cheaper, more sustainable alternatives. I do know that many Americans still want to pay the cheap prices for products they've come to expect for the past 40+ years (thanks, Walmart), but we can't expect products to be as cheap if we start insisting they'll be made in America. So get used to higher prices.
Major oil companies reported profits of over $75B and they claim they don't have control over the price at the pump. Baloney. We need to get more charging stations installed across the country, allow EV purchasers to use the rebate as a down payment and put a windfall profits tax in place for all large companies that are exploiting the public.
I support Bernie's plan.
https://www.sanders.senate.gov/press-releases/news-sanders-introduces-legislation-to-reinstate-the-wwii-windfall-profit-tax-to-combat-rising-inequality-inflation-and-corporate-profiteering/
If the rise helps benefit our economy, then I am all for it in moving our country in the right direction.
Biden did that Incompetent sob couldn't run a popcorn wagon.Time to resign before the Hunter laptop truth comes out and you get impeached.
Please vote for something that stops printing excessive money
I don't know the answer to the enormous rate of inflation. The world shut down due to the coronavirus. Many people couldn't work due to the closure of an entire industry or to protect everyone's health.
The world has regained some sense of normalcy with most things reopening. Some people have been able to go back to work. Many people don't have a job go to back to for any number of reasons.
Now those who cannot earn an income still are suffering because what little resources they have must be stretched beyond usefulness. Even those of us who were fortunate to work this entire time are feeling the squeeze due to this ridiculous inflation.
I don't know the solution but I do know that options need to be developed and explored. The people literally cannot afford to have our income devalued any more than it already has.
Part of the inflation problems is from the start up of the economy from almost a dead stop, and the world also being shutdown! We thought globalization was a good thing, but depending on other countries for our need does present some real problems!
The increase at the pump is also a factor of demand, Ukraine/ Putin war, and the fact that the oil industry shutdown during Covid19! Plus you have corporate oil people that staged their feet in increasing production to get more profits!
Elected Officials help stop this insanity!!!
Sit in your pretty office in DC, try taking the subway one day or walking the streets instead of your security driven limo driven car ride!!!
The hate, the economy, the war against each other!!!
America has its own low grafe war going on!!! Crime, homelessness, hatred among America is spreading!!! Not a joke!!!
Eyes wide shut
Of course inflation sucks, but it is not the fault of the President, no matter who it is
Biden obviously is out of options to repair the soaring budget deficit. That is a result of his sanctioning Russia.
Temporary interference! Activate Biden's BBB-plan and this will greatly affect Inflation 'interference'.
UPDATE [4-15-22]: On 3-29-22 wind turbines produced more electricity than coal and nuclear according to the US Energy Information Administration, an agency that collects energy statistics for the government.
This is wha we need more of to lower the cost of energy. Maybe use the DPA to increase use of wind turbines?
https://www.npr.org/2022/04/14/1092806582/wind-power-energy-source
Sorry I'm late to resign in to Causes.
the world is experiencing high inflation. This is driven by Russias war on Ukraine, greedy corporations, need for truckers, corporations need to hold better inventories, enough with the just in time and now the Texas Governor is holding trucks at the boarder allowing for fruits and vegetables to spoil and parts to be late. Some of these things can be fixed if only Republicans would think about the people instead of themselves.
Is anyone else getting tired of Elon Musk.
This man is worth hundreds of billions of dollars while people are making $11 an hour and only on a part time basis at McDonald's if they're lucky.
I think I've had enough of Musk.
Everyone with investments LOVES inflation, and everyone without investments HATES inflation! Bottom line, it is painful for those who can least afford more stress on their budgets. That said, while we are at a 40 year high on inflationwe are at a 50 year low on unemployment and this administration seems to be doing everyting right to get it under control! Now if only the SENATE would stop blocking their efforts to save the country and the world!
I wonder just how tone deaf the Dems in Congress and White House are over the feelings of voters?
1. Free up American Oil and Gas exploration, permit drilling and pipelines, stop the measures to target oil and gas financial freedoms; these actions will start driving fuel inflation lower. The Strategic Petroleum Reserve is being drained in an attempt to save Biden's face, this is too important safeguard to squander on trying to bandaid White House's self inflicted policy wounds.
2. Restore control over the Southern Border, Democrats are losing Hispanics which do not support open border policies. Blacks are hurt in work force competing against illegal immigrants. ( Do not confuse "processing" hoards of humanity as enforcement of immigration law.) The Border Patrol is overwhelmed with processing illegals, not able to keep drugs and human traffickers our of USA, did Hunter Biden on behalf of his father, take influence money from Mexican Cartels for these favorable policies which make them a fortune?
3. Wrong track polls are the "Canary" it is telling Democrats their political control is dying.
Responded to Anne.
Just read an article on Microsoft that said: “According to an Accountable.US report exclusively obtained by Salon, three Republican senators and fifteen members of the House GOP caucus have raked in at least $5,709,425 from corporations that have used inflation as a pretext for jacking up prices.” It goes on to state that corporate profits were the highest they were last year and that the Republican caucus in the House and Senate are giving them a pass. Further, Senator McConnell last year raked in $1.24 million from industry behemoths like Walmart, Kroger, Chevron, Johnson and Johnson and Ford! McConnell did not respond to Salon’s request for comment. Kroger and J&J “have openly bragged about hiking prices in investor calls, celebrating inflation as a unique opportunity to pass along costs to their customers.” People you should read this. It goes on to name others like Sen. Roy’s Blunt and Pat Toomey. This needs to be news that is given to all news agencies. People have a RIGHT to know who is screwing them. You have an OBLIGATION to do so! DO YOUR JOBS!
People we MUST get rid of Citizens United. IT IS DESTROYING THE AMERICA WE SO LOVE. Call you representatives and DEMAND CITIZENS UNITED BE OVERTURNED OR AMERICA WILL CONTINUE ON THIS PATH OF CORRUPTION AND DESTRUCTION! Or make sure you vote them all out in the midterms. We need new blood. All of the current sitting members of Congress are tainted by Citizens United in some way, I believe. Elect people who will stop this incessant greed, PLEASE! TAX THE WEALTHY AND CORPORATIONS AND EXACT OUR REVENGE!