The labor department stated Wednesday that prices in the United States rose at their highest percentages since 1981, climbing 8.5% this year to the end of March as the crisis in Ukraine brought up energy expenses for Americans.
The Consumer Price Index, which monitors the costs of products and services, climbed 7.9% this year until February, the fastest rate of an annual increase in 40 years.
Inflation in the U.S. has reached levels not seen since Ronald Reagan won the presidency from Jimmy Carter, owing to ongoing supply chain issues, surging demand, and increasing energy prices.
The price hikes are widespread, with rent, petrol, and food inflicting significant difficulty for Americans with lower income.
They are a big setback for the Biden government, which is already facing slim chances of keeping congressional power in November's upcoming elections.
The primary cause of the rise was rising petrol prices. Last month, the gasoline index increased 18.2%, accounting for more than half of all monthly increases.
Gas prices have started to fall, indicating that inflation has peaked, according to some analysts.
In March, the food index increased by 1% over February and is now up 8.8% over the previous 12 months.
Between February to March, prices for canned fruits and vegetables increased by 3.8%, ground beef by 2.1%, rice by 3.2%, and potatoes by 3.2%.
Energy costs will fall in the months ahead, according to Andrew Hunter, senior U.S. economist at Capital Economics, and there are indications that pricing pressures are easing.
However, he noted that the statistics were expected to support the Federal Reserve's strategy to raise interest rates as it battles inflation.
Prior to the release of the report, the White House stated that it expected a poor set of numbers.
Jen Psaki, the White House press secretary, said on Monday that the last labor department assessment did not account for the majority of the increase in oil and gas prices caused by Russia's invasion of Ukraine.
"Due to Putin's price hike, we predict March CPI headline inflation to be very high," Psaki said.
There are two variations of the CPI: one that covers all costs faced by consumers, and the other - core CPI - that removes fluctuating food and energy prices.
The main index did show a decrease in inflation, rising 0.3% in March from February, compared to 0.5% the previous month.
A gallon of gas costs $4.11 on average in the United States, up from $2.86 a year earlier.
