Last March, inflation was the highest in the previous semester: 1.2% in all items, the highest being gasoline. Compared with last year, the increase got registered at 8.5%.
Inflation is invading the world. The numbers started to go negative when the pandemic began, and now, the current conflict between Russia and Ukraine has worsened the situation. The data shown by the Bureau of Labor Statistics presented the severe struggles that a country such as the United States of America is facing.
The US Department of Labor’s Consumer Price Index, a metric used to measure the rising cost of living, elevated its stats faster than expected in March. One of the most prominent causes that boosted this sudden increase has been the price of both energy and food. Both additions get closely linked to the current conflict in Europe, given Russia’s vital role in both economic areas.
According to various reports and studies, it is worth noting that with the numbers for this month, annual inflation is 8.5%, the highest in at least four decades. Not since 1981 had the nation experienced inflation of such magnitudes.
The Month with the Highest Inflation Ever Recorded
The Consumer Price Index for All Urban Consumers shows an increase of 1.2 percent in March. This increase is the most significant monthly increase in recent months. In February, this index was 0.8%; in January, it was 0.6, and in December 2021, it was also 0.6.
The gasoline, housing, and food prices were the fundamental causes that led the highest percentage to the seasonally adjusted increase of all items. For example, gasoline rose 18.3% in March, while it had reached a peak registered at 6.6% the previous month. Throughout the year, the increase marked in this energy is 48%.
Meanwhile, electricity in the United States of America approached at least 2.2% in March and 11.1% last year. Also, according to stats related to food, the increase this month was 1%, and the index of food consumed within the home increased by 1.5 percent. There was an increase of 8.8% in food items throughout the year.
Also contributing to the increase was the increase in housing, transportation, airfares, furniture, medical goods and services, health care, and insurance, among other interests.
What about Digital Assets?
In all of March 2022, digital currencies didn’t have the best performance in the market, but they presented balanced stability, with some ups and downs but avoiding big falls and crashes.
In general terms, Bitcoin (BTC) has an increase of 5% on today’s date, April 12, while Ethereum (ETH) grew by 20% for the same period. Cardano (ADA) is another strong performer between mid-March and today: up 23%. As for Solana (SOL), very fashionable lately, the increase was 35% in the last month.
For those doubting the power of digital assets as an ally to protect against inflation, these numbers speak for themselves.
By: Jenson Nuñez
