Consumer Prices Rise by 1.2 Percent in March

By Manuel Gutierrez, Consulting Economist to NKBA

This is the largest monthly gain in fifteen years as prices are now 8.5 percent above a year ago.

• Only five times in the last 70 years have month-over-month prices risen faster.
•  Gasoline prices are up by 48 percent since last March, although household energy costs are just over 15 percent higher.
•  Excluding gasoline/energy costs, inflation is still 6.8 percent higher than year ago, with basics such as Food costing consumers 8.8 percent more this March over last.
•  Other large contributors to spiraling prices are used vehicles, which have posted a 35 percent gain over a year ago.
•  Closer to home, the average cost for all products and services used to run and maintain a house is up 6.4 percent in the past year, trailing overall inflation.
•  Major Appliances, including refrigerators and washers, are 12.4% higher than a year ago, while Small Appliances are up a more modest 5.7 percent.
•  Regionally, the South was hit hardest with an annual price increase of 9.1 percent, while the Northeast suffered the least, but was still up a considerable 7.3 percent.