U.S. Inflation Accelerated to 8.5% in March, Hitting Four-Decade High
Consumer-price index increase from year earlier driven by skyrocketing energy and food costs. Consumers are growing savvy to shrinkflation, the practice of downsizing the contents of a product rather than raising prices. So companies are getting creative.
U.S. inflation surged to a new four-decade high of 8.5% in March from the same month a year ago, driven by skyrocketing energy and food costs, supply constraints and strong consumer demand.
The Labor Department on Tuesday said the consumer-price index—which measures what consumers pay for goods and services—last month rose at its fastest annual pace since December 1981, up from the 7.9% annual rate in February. Rising prices have been unrelenting, with six straight months of inflation above 6% that is well above the Federal Reserve’s average 2% target.