U.S. inflation surged to the four-decade high of 8.5% in March, far above the Federal Reserve's target of 2% inflation.
According to analysts, the sharp rise in inflation last month was driven by the sharply rising prices of gasoline and oil, as well as strong consumer demand and markedly higher food prices.
Inflation rose at a faster pace in March of 2022 than in any other month since 1981, up from the previous high of 7.9% in February.
This news on inflation comes as economists fear a recession is on the horizon, according to a Wall Street Journal report.
The recession would be caused by a mixture of inflation, supply-chain shortages, consumer demand, and the heavy-handed but necessary interest rate hikes being made by the Federal Reserve.
According to the WSJ, "economists have slashed their forecast for growth this year."
The report continued on to show that the risk of a recession occurring in the next 12 months is estimated to be at 28%, up from 18% in January and 13% a year ago.
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Joseph Hugh, Al K. Scott
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