Inflation continues to run hot. The Consumer Price Index (CPI) for March was released this week.
The increase of 8.5% over the year and 1.2% from February to March shows a continuation of price increases. A lot of this increase can be attributed to sharp rises in energy.
Fuel oil was up 22.3% and gasoline, up 18.1% over the month, contributed to an increase of 11.0% in the energy segment of the report. From last year, fuel oil and gasoline were up 70.1% and 48.0%, respectively.
Prices for used cars were the only major decline in the month, down 3.8%.
CPI excluding food and energy was up 6.5%. The high inflation number increases the likelihood of more aggressive Federal Reserve action. The probability has increased for a 0.50% raise at the Federal Open Market Committee May meeting.