Inflation Hit 40 Year High in March. CPI Rose 8.5%

Consumer prices climbed further into the stratosphere in March, and the only consolation is that the painful bout of skyrocketing costs may have peaked.

Inflation hit a fresh 40-year high as continuing surges in gasoline, food and rent costs more than offset moderating prices for used cars.

The consumer price index leaped 8.5% annually, the fastest pace since December 1981, the Labor Department said Tuesday, likely cementing Federal Reserve plans for an unusually large half-point interest rate hike early next month. That increase is up from 7.9% in February, and inflation now has notched new 40-year highs for five straight months.

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