Driven by rising energy prices, inflation hit 1.2 percent in March and consumers are now paying 8.5 percent more, on average, than they were this time last year, according to new price data released Tuesday morning.
The annualized inflation rate reported by the Bureau of Labor Statistics (BLS) is the highest since December 1981, and the monthly rate for March signals an acceleration in price hikes—up from 0.8 percent in February. As expected, gasoline price increases driven by the war in Ukraine and subsequent worldwide reduction in imports of Russian gas were the biggest factor in March's inflation rate. Gas prices rose by 18.3 percent during the month, and energy prices as a whole climbed by 11 percent.
