Inflation Hits Record

Inflation hit a level in March that was last seen about forty years ago, according to The Wall Street Journal (subscription).

The big number: Inflation in the United States reached 8.5% in March, the highest level since 1982, according to today’s announcement from the Department of Labor.

The numbers continue a significant run for inflation, which has stayed above 6% for the past six months.

The bigger picture: The booming U.S. economy is fueling the spike, increasing the prices for goods and services alike.

Employers added 431,000 jobs in March, marking the 11th straight month of job growth above 400,000—a record level not seen since 1939.
In addition, high demand for labor, snarled supply chains and an increase in consumer demand for travel, dining and other services as the COVID-19 pandemic eases have also contributed to the rise in inflation.

While consumer spending remains strong, up 13.7% since last year, its rising pace has decelerated slightly since January, fueling concerns of a consumer pullback.

Meanwhile, annual wage growth was 6% in March—the fastest pace since more than 25 years ago—but the increase has been outpaced by rising prices.