U.S. Perspective - Combatting Inflation

As expected, inflation surged again in March, rising at the highest rate since December 1981.

Details:

•    Energy prices and higher food costs are driving prices higher. Gas rose 48% annually, electricity rose 11.1%, and food rose 8.8%.

•    But even taking these more volatile prices out of the calculation, so-called core prices rose 6.5%. Those prices haven’t gone up that much since 1982.

•    New cars are still up 12.5% annually, and used cars are up 35%.

And: Keep an eye on housing prices. The cost of housing (rent and owner-occupied) rose 5% annually in March. But rental prices have not fully adjusted to the increase in home prices (19% nationally according to the Case-Schiller Index). Rents will rise as contracts adjust to reflect higher home prices. This will push overall inflation up.

Washington Must Focus on Fighting Inflation

The Senate Budget Committee recently held a hearing on inflation. This brings much-needed attention on an issue that’s hitting American businesses and families hard.

Working together to find the solution and diagnosing the real causes of inflation that are exacerbating higher prices on families will help us in blocking recession. 

Bottom line: Policymakers should be working on solutions that address the real root causes of inflation.

U.S. Chamber Urges Focus on Easing Regulations, Reducing Tariffs, and Increasing Domestic Energy Production to Combat Historic Inflation

In response to March's CPI data, Neil Bradley, Executive Vice President and Chief Policy Officer at the U.S. Chamber of Commerce, released a statement:

“New data out today shows what Americans already know: inflation continues to chip away at their buying power and impact the larger workforce. Rising costs in housing, food, and energy are making it difficult for American families and businesses to get ahead, and while monetary policy remains the best tool to fight inflation, policymakers should also be focusing on easing regulations, reducing tariffs, and increasing domestic energy production." Click here to continue reading.