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Key inflation indicator increases to 40-year high of 6.6%

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Key inflation indicator increases to 40-year high of 6.6%
According to the Bureau of Economic Analysis, food prices increased 9.2%. File Photo by Bill Greenblatt/UPI | License Photo

April 29 (UPI) -- 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.

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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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