The Department of Labor has just issued a report on the User Price Index (PPI) or CPI. According to reports, the daily price of goods users pay has jumped to the highest level since Reagan's reinstatement for the month of March.
The User Price Index, which measures a collection of goods and services, jumped 8.5% from a year ago on an unadjusted annual basis. The reading also exceeded the Dow Jones budget, which had forecast a gain of 8.4% a year. Regardless of items such as food and energy, IHP increased by 6.5% in line with the target.
The data illustrates the highest price increases that have occurred since the stagflation era in the late 1970s and early 80s. More accurately the month March reading was the highest since December 1981. Core inflation was the highest since August 1982.
Despite the big improvement, the market reacted positively in response to the report. The trading market for stocks rose and the yield of royal bonds was also reported to have fallen. According to U.S. right-wing economists at Capital Economics, Andrew Hunter argues that the gains in March may be an indication he has reached a peak for inflation as year-on-year comparisons spur lower numbers and lower energy prices.
However, this increase in the price of goods and services is seen as not being accompanied by true income. Average hourly earnings saw a 0.8% decline in seasonal alignment for March.
To combat inflation, the Alliance of Rizab has begun to increase the benefit rate and is expected to continue to do so throughout the remainder of this year and until 2023.
The US dollar index, which measures the major currency versus six other major currencies traded, slipped to a trading level of 99,957 after the inflation data was released.
