Inflation in the United States jumped to 8.5% in March, its highest level since December 1981, as the war in Ukraine raised the cost of living, Bureau of Labor Statistics data showed yesterday. Food prices and rents witnessed particularly large jumps during the month, while the cost of gasoline accounted for more than half of the monthly increase for all items, rising by 18.3%. The rise in inflation was driven by both significant growth after the US economy recovered from the repercussions of the pandemic, according to the Wall Street Journal, in addition to the sharp rise in oil and commodity prices against the backdrop of the war in Ukraine. These ratios also exceed analyst expectations that the consumer price index will record 8.4% in March .
different reactions in global markets :
US stocks closed slightly lower, paring gains made earlier in the day as traders bet that price pressures may have peaked, according to Bloomberg. Rising commodity prices – including oil prices – seem to have ended those hopes, as benchmark Brent crude rose to trade near $105 a barrel in early trading this morning. Markets are now awaiting the earnings announcement season from major banks – which starts from today – for indications about the effects of inflation.