The monthly Consumer Price Index report from the Bureau of Labor Statistics was released Tuesday morning, and while inflation continues to rise some economists appear pleased, with one stating the report is “slightly better than anticipated.”
Overall, the annual rate of inflation is 8.5 percent, but removing food and energy, prices are up 6.5 percent annually.
Gas prices are a big part of the inflation rate. CNN’s cable reporting calls the current report a “rearview mirror” look, given that gas prices are coming down. They add some economists are hoping the peak of the inflation has been reached. They also note that the U.S. does not rely much on oil from Russia, so in other countries, inflation is worse.
“Food prices are up 8.8% over the past year. Energy prices are up 32%, including 11% in March alone — reflecting the spike in energy prices associated with Russia’s invasion of Ukraine,” The New York Times’ Ben Casselman notes.
Casselman points to Putin’s illegal war in Ukraine for food price increases:
And he sees some good news: “Headline inflation accelerated in March, but we all knew that would happen given gas prices. The bigger surprise is the slowdown in ‘core’ inflation.”
There’s still plenty to be concerned about. Casselman says this is “the fastest year-over-year inflation since 1981.”
Meanwhile, oil companies – not the President – set the price of gas at the pump and other energy products, and are under no obligation to price gouge, which is illegal in most states during a declared state of emergency, such as war, natural disasters, or COVID-19.
University of Michigan economist and public policy professor Justin Wolfers:
And Wolfers throws a challenge to the mainstream media, which is generally focused on only bad news:
Image: Federal Reserve Chairman Jerome Powell via Flickr