American shoppers feel pinch as consumer prices reach a 40-year high

The Labor Department announced on Tuesday that inflation in the United States reached a 40-year high last month as the economy struggles to navigate backed up supply chains, uncertainty surrounding the war in Europe and growing consumer demand.

According to new data released by the department, the consumer price index – which measures the cost of a variety of everyday goods including gasoline, groceries, healthcare and rents – rose by 8.5% in March from last year, representing the fastest rise since December 1981, Fox Business reported.

Similarly, prices rose by 1.2% in the one-month period since February – a jump which economists believe represents the largest month-to-month increase since 2005.

Although reports have warned of rising inflation for months now, this time surely feels different for Americans as prices for everyday goods have risen dramatically in recent weeks.

Gas, for example, hasn’t been this expensive since 2008 when former President Barack Obama was in the White House

Energy prices rose by 11% in March from the previous month and are up 32% from 2021. At the pump, this means that Americans are paying 48% more than they did last year for gas after prices rose by an additional 18.3% in March as energy uncertainty connected to Russia’s illegal war against Ukraine has drastically pushed prices up across the globe.

Food prices also rose by 8.8% over the year and 1% over the month. For Americans, this means that basic food stuffs are noticeably more expensive. The largest increases so far, it seems, are in cereal and bakery products (10%), poultry, fish and meat (13.8%), fresh fruits and vegetables (8.1%), and eggs (11.2%). 

Even used car and truck prices are at a historic high and have risen by 35.3% from the previous year. Considering how many Americans rely on access to used cars for transportation to work, this is a very real concern.

Such rapidly rising costs are hitting Americans especially hard as inflation continues to eat away at the strong wage gains witnessed by American workers in recent months. According to the Labor Department, real average hourly earnings actually decreased by 0.8% in March from the previous month – just as the 1.2% inflation increase eroded the 0.4% total wage gain registered that month. On an annual basis, real earnings fell 2.7% in March.

But as consumer prices continue to steadily rise, President Biden’s approval rating has continued to fall to all-time lows. Although the administration has blamed rising prices on supply-chain bottlenecks and Russia’s war in Ukraine, Republicans have blamed the president’s costly spending plans and failed energy policies.

Democratic strategists have warned that the president’s historically low approval ratings could harm the party going into this year’s midterms as Americans continue to grapple with historically high inflation, rising prices and growing uncertainty in Europe, The Hill previously reported.

“In terms of Biden, I think these can only be called rough political times,” said Princeton University history and public affairs professor Julian Zelizer. “At least going into the midterm, these poor perceptions of his leadership and the inflationary pressures will weigh him and the Democrats down.”