Inflation as measured by the Personal Consumption Expenditures price index rose to a 40-year high in March — 6.6% for the year — the Commerce Department announced Friday.
The figure reflects an increase in consumer spending, up from 6.3% annually in February, according to the Bureau of Economic Analysis.
March’s rate was the highest since the year ending January 1982.
Meanwhile, the annual Personal Consumption Expenditures price index not factoring in food and energy rose 5.2%, a slightly smaller increase than 5.3% a month ago. The BEA said energy prices rose 33.9% while food prices increased 9.2%.
Personal income increased an estimated $107.2 billion (0.5%), while disposable personal income increased $89.7 billion (0.5%).
“The increase in personal income in March primarily reflected an increase in compensation, proprietors’ income, personal income receipts on assets, and government social benefits,” the BEA said in a news release.
Inflation in services was widespread, led by international travel as well as food services and accommodations. Spending on goods saw an increase in non-durable goods, such as gasoline and energy, offset by a decrease in spending on durable goods such as motor vehicles and parts.
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