The latest U.S. vital data report showed that consumer prices soared higher in March driven by strong economic growth since the Covid-19 pandemic hit.
The Consumer Price Index (CPI) increased 0.6% compared to the previous month but 2.6% compared to last year. This annual increase is the highest increase since August 2018.
The reading also surpassed the expectations of economists who are targeting only a 0.5% increase per month and 2.5% from March 2020.
The large increase from year to year is due to the impact of low-level policies or comparisons being used. In March 2020, the government began imposing curfews and massive economic sector closures that eventually led to more than 22 million Americans going to the line. unemployment.
Core inflation excluding food and energy costs was also reported to increase by 0.3% monthly and 1.6% year -on -year.
While total inflation appears to be high, many economists as well as policymakers at the Federal Reserve view it as temporary. Therefore, many predict that in April, inflation is also expected to increase but it will begin to decrease.
On that basis Fed officials say they will not adjust policy based on short -term spikes in inflation readings. Fed officials see economic growth this year at around 6.5%, the fastest increase since 1984.
The US dollar index, which measures the greenback against other currencies, remained down 0.10% to 92.037.
