CNN Business: Consumer Price Inflation Hit a New 40-Year High in March

Article by Anneken Tappe in CNN Business

America's inflation problem didn't abate in March. Prices kept creeping up, hitting a fresh 40-year high, data from the Bureau of Labor Statistics showed Tuesday.

The Consumer Price Index rose 8.5% for the year ended in March, not adjusted for seasonal swings. That outpaced February's elevated reading of 7.9% and marked a level not seen since December 1981 when the CPI stood at 8.9%. Tuesday's March data was slightly higher than the 8.4% economists had predicted.

Last month alone, US gas prices rose by more than 18%. Year-over-year, the price of gas soared by 48%.

Stripping out the more volatile food and energy categories, prices rose 6.5% over the 12-month period ended in March -- the biggest jump since August 1982.

Energy costs soared 32% over the last year, while food prices rose by 8.8%. It was the biggest increase in food prices since May 1981.

Even though these more volatile items contributed so much to last month's price hikes, Tuesday's numbers also show that inflationary pressures are broad across the economy, said Joe Brusuelas, chief economist at RSM US.

"Yes, inflation may soon find its peak. However, that does not imply significant relief is on the way in the near term," he said.

For the month of March, consumer prices rose 1.2% with seasonal adjustments, the biggest jump since September 2005. Excluding food and energy, prices rose 0.3% -- less than in February, underlining how big a factor commodity prices are in ......

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