US records 41-year high inflation rate of 8.4% in March 2022

Inflation in the United States has shot up 8.4% over the year to the end of March, hitting a 41-year high. It is the highest year-on-year increase in the inflation rate in the United States since December 1981. The US consumer price index has soared by 1.2 per cent in March from its February figure. This increase of 1.2 per cent is itself the highest month-to-month jump since 2005. The government data was released on Tuesday by the US government.

Skyrocketing gas prices have been the main reason behind the high inflation rates. Increasing housing and food costs have also played a significant role in the US registering record-breaking inflation in March. Since Russia invaded Ukraine and western countries slapped sanctions against the Russian government, gas prices in the US have witnessed a considerable rise. Earlier, the US's national average daily gas price had hit a record high of $4.11 per gallon, although it has eased in recent days.

The high gas prices have caused an increase in the transportation costs of goods, aggravating the inflation rate. The chief economist at Wilmington Trust, Luke Tilley, said that the ongoing Russia-Ukraine crisis had worsened the inflation.


The soaring inflation is expected to be a major political blow to US President Joe Biden and his government ahead of November's midterm elections. The Biden administration seeks to keep control of Congress in the polls, but the rising prices of goods can dent their political aspiration as the soaring inflation rate has caused severe hardships for Americans.

Notably, it is the second consecutive record-breaking inflation rate as February's figure had also registered a 40-year high year-on-year increase. February 2022 had recorded a 7.9 per cent year-on-year increase.

However, the US economy as a whole stands firm with record-high job openings and the unemployment rate dipping to the 50-year low.