May 13, 2021

Anna Murray 

According to the U.S. Bureau of Labor Statistics, the CPI (Consumer Price Index) for all urban consumers reportedly soared 13-year high of 2.6% for the 12 months ending March 2021, the largest over-the-year increase since August 2018. In addition, over the same 12 months, food prices rose 3.5% while energy prices increased 13.2%. Prices for all items less food and energy advanced 1.6%.

The article “Consumer prices increase 2.6 percent for the 12 months ending March 2021” was published April 15 on The Economics Daily, an official website of the United States government. The CPI is available for the U.S. and various geographic areas as a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI also signals the rate of inflation in the US. The recent CPI increase meaning inflation rise sharply. It has put greater stress on the US economy as businesses are encountering the cost hikes of many goods and services. The U.S. Bureau of Labor Statistics reported May 12, over the last 12 months, the rate of inflation in accordance with all items index increased 4.2% before seasonal adjustment. It is the largest 12-month increase since a 4.9% increase for the period ending September 2008.

Economists and investors are worried about the steady rise in US inflation and its impact on the global economy which has been staggering to recover from the COVID-19 pandemic. Many expect that the Federal Reserve will be forced to react to the rising inflation without hurting President Biden's record-breaking stimulus package and continuing to encourage market volatility.

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