Bidenomics: Inflation Soars as DC Plans More Spending

The U.S. Bureau of Labor Statistics reported Wednesday that the Consumer Price Index for All Urban Consumers (CPI-U), the key measure of inflation in the U.S. economy, rose by 0.4 percent in March, matching February’s increase. Over the past 12 months, the all-items index has climbed 3.5 percent.

Significant price increases in housing and gasoline were major contributors to the March rise, collectively accounting for more than half of the monthly all-items increase. The energy index, which includes these costs, saw a 1.1 percent increase.

“Indexes for shelter, motor vehicle insurance, medical care, apparel, and personal care all rose in March,” the U.S. Bureau of Labor Statistics (BLS) noted. In contrast, prices for used cars and trucks, along with new vehicles and recreation, declined.

Year over year, the all-items index has risen by 3.5 percent, with the index less food and energy climbing 3.8 percent. Notably, the energy index saw its first 12-month increase since February 2023, up 2.1 percent.

In other words, all of life’s basic necessities are getting more expensive as the purchasing power of the U.S. dollar increasingly shrinks.

Shelter costs continued to climb with a 0.4 percent increase.

“The shelter index’s rise was the largest factor in the monthly increase in the index for all items less food and energy,” the BLS stated. Rent of primary residence and owners’ equivalent rent both increased by 0.4 percent.

The index for medical care rose by 0.5 percent in March, reflecting increases in hospital services and prescription drugs, which rose by 1.0 percent and 0.3 percent, respectively.

Looking ahead, BLS’ next CPI update is scheduled for May 15, 2024, when it will release the figures for April.

For detailed insights and further breakdowns by category, the U.S. Bureau of Labor Statistics encourages reviewing the full report on their website.