Inflation has hit a 40-year high, according to data reported by the Bureau of Labor Statistics on Tuesday.
New data shows inflation climbed to 8.5% in March, with costs for food, gasoline, housing and other necessities squeezing American consumers and wiping out the pay raises that many people have received.
The Labor Department said the 12-month jump in inflation is the biggest year-over-year increase since December 1981.
Prices have been driven up by bottlenecked supply chains, robust consumer demand and disruptions to global food and energy markets worsened by Russia’s war against Ukraine.
Rental rates have also increased for the past seven months.
The government’s report also showed that inflation rose 1.2% from February to March, up from a 0.8% increase from January to February.
The Federal Reserve will likely move forward with its plans to continue raising interest rates to fight inflation.
It raised its key federal funds rate in March to a range of 0.25% to 0.5%.
The Fed is projecting at least six more rate hikes this year.