US inflation accelerates to 2.6% year on year

Spread the love

Consumer prices climbed in March in the United States, reaching 2.6% inflation over one year, to the highest level since the fall of 2018, a movement that should continue in the months to come with the economic recovery.

On a month, inflation accelerated compared to February, to 0.6% against 0.4%, according to data released Tuesday by the Department of Labor, a little more than the 0.5% expected by analysts. This is the fastest pace since August 2012. It is in particular the price of gasoline which climbed, + 9.1% compared to February.

And the increase is particularly marked over one year: prices increased by 2.6% compared to March 2020, when inflation, under the effect of confinement, had fallen into negative territory. The prices of fuel, plane tickets, tourist accommodation, and clothing, had plummeted.

Read also: Swiss and Asian consumers support the recovery

Fears of galloping inflation

Without taking into account volatile energy and food prices, so-called core inflation is also accelerating, to 0.3% over one month (0.1% in February) and 1.6% over one year (1.3% in February). The index measuring food prices rose 3.5% year on year, that measuring energy prices jumped 13.2%.

“In the coming months, the base effects and one-time price increases resulting from the reopening of the economy and the impact of bottlenecks on the supply chain, are expected to continue to drive up the pace of the economy. inflation at 3.5% year-on-year, ”commented Kathy Bostjancic, chief economist for Oxford Economics, in a note.

The markets fear that inflation will be too high in the coming months, but the American Central Bank (Fed), the IMF as well as the economists of the White House, estimate that this rise in prices will be only temporary.