A new government report says fuel price increases are stoking the flames of inflation.
Consumer prices are running 8.5% higher than a year ago, according to the latest report from the Bureau of Labor Statistics.
The Consumer Price Index for All Urban Consumers increased 1.2% in March on a seasonally adjusted basis after rising 0.8% in February, the report said. Over the last 12 months, the all-items index increased 8.5% before seasonal adjustment, according to the report.
The 8.5% jump in consumer prices for the 12 months is the biggest year-to-year increase since December 1981, the report said.
Pedal to the metal
Increases in the indexes for gasoline, shelter and food were the largest contributors to the seasonally adjusted all items increase, the report said.
The gasoline index rose 18.3% in March and accounted for over half of the all-items monthly increase.
Food prices creeping higher
The food index increased 1% in March as the food at home index increased 1.5% over the month. All six major grocery store food group indexes increased in March, according to the report.
The price index for fruits and vegetables rose 1.5% following a 2.3% increase in February, the report said. Fresh fruit and vegetable prices have jumped 8.1% over the past year, with fresh fruit inflation far outpacing fresh vegetables.
Fresh fruit prices have increased 10.1% in the last year, the report said, while fresh vegetable prices in March were 5.9% higher than a year ago.
The restaurant food index rose 0.3% in March, a smaller increase than in recent months. The index for full-service meals rose 0.7% over the month, in contrast to the index for limited-service meals, which declined 0.2%, the category's first decrease since October 2018, the report said.
The price index for restaurant food rose 6.9% over the last year, the largest 12-month increase since December 1981.
The grocery food index rose 10% over the last 12 months, the largest 12-month increase since the period ending March 1981, according to the report. The index for meats, poultry, fish, and eggs increased 13.7% over the last year as the index for beef rose 16%.