March inflation breakdown: Where are prices rising the fastest?

Inflation rose faster than expected in March as rising rent and gas prices kept prices painfully high for millions of Americans.

The Labor Department said Wednesday that the Consumer Price Index (CPI), which measures the price of daily necessities including gasoline, food and rent, rose by 0.4.% From last month to March. Prices rose 3.5% year-on-year, exceeding the 3.2% recorded in February.

“This was a disastrous report with little to brighten consumers,” said Robert Frick, business economist at Navy Federal Credit Union. “Not only did food prices go up, which had seemed pretty flat, but car insurance also went up significantly.”

Here’s a breakdown of where prices are rising and falling the fastest as Americans continue to battle sticker shock.

Inflation accelerates more than expected in March as prices remain high

rent

Housing costs remained one of the biggest drivers of inflation last month. Rent increased by 0.5% in the same month, and by 5.7% compared to the same period last year.

The reason why rent increases are a concern is that Rising housing costs It has the most direct and severe impact on household finances. Separate data showing how much homeowners would pay in equivalent rent if they didn’t buy a home also rose 0.4% from the previous month.

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food

Food is one of the most visceral reminders of inflation for Americans. Food prices rose 0.1% in March after being flat the previous month. Food prices continue to rise by 2.2% compared to the same period last year.

Food prices were flat in March, data showed, but rose 1.2% year-on-year. Furthermore, compared to January 2021, before the inflation crisis began, food prices have increased by 21%.

Egg prices soared 4.6% in March due to the resurgence of bird flu. Consumers also prefer rice (0.6%), beef and veal (0.2%), pork (1.1%), chicken (1.8%), fresh seafood (0.1%), bananas (0.6%), and lettuce (5.9%). %), juice (0.6%), coffee (0.3%).

People shop in the food section of a retail store in Rosemead, California, on January 19. (Frederick J. Brown/AFP via Getty Images/Getty Images)

Why are groceries still so expensive?

However, prices for some food items actually fell last month, with prices for cereals, bread, ham, apples and tomatoes falling significantly.

energy

Energy prices rose for the second month in a row in March, adding to the financial pressures many households were already enduring. Prices rose 1.1% for the month, including a 1.7% rise in gasoline prices.

The average cost of a gallon of gas on Wednesday reached $3.61, an increase of more than 6% from a month ago, according to AAA. Prices are expected to rise further. Oil prices are rapidly approaching $90 per barrel amid fears of more war in the Middle East.

On March 12th, gasoline prices were displayed at gas stations in Chicago. (Scott Olson/Getty Images/Getty Images)

Electricity prices also increased by 0.9% in March, still 5% higher than last year.

car

There was good news for Americans looking to buy a car in March.

of used car price This was a key factor in the inflation spike in 2022, which fell 1.1% last month and is down 2.2% year-on-year.

Prices of new cars and trucks also fell little by little in March, falling by 0.2%. Prices decreased by 0.1% compared to the same period last year.

However, there is another problem for car owners: rising insurance premiums. Auto insurance increased by 2.6% in March, following an increase in the previous four months. On an annual basis, prices have increased by a whopping 22.2%.

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travel and transportation

A United Airlines Boeing 787 taxis and a United Airlines Boeing 767 lands at San Francisco International Airport. (Reuters/Louis Nastro/File Photo/Reuters Photo)

Airline ticket sales in March fell for the first time in months, dropping 0.4%.

According to the data, ticket prices fell by about 7.1% compared to last year.