Rising gasoline prices are fueling inflation. | Airman 1st Class Andrew Lee, Public domain, via Wikimedia Commons
Rising gasoline prices are fueling inflation. | Airman 1st Class Andrew Lee, Public domain, via Wikimedia Commons
U.S. inflation increased 8.5% for the 12 months ending in March, the largest year-over-year increase since 1981, according to the Bureau of Labor Statistics (BLS). This is the steepest all items hike in 40 years.
At the same time, national year-over-year wage increases are now at -2.7% as of March 2022. With wage inflation at a negative, the median household income in the State of Michigan has seen a -$1,543 year-over-year loss, reducing the current average household income to $57,144 a year, according to World Population Review.
"Imagine being a young family right now, rent for a two-bedroom home went up 22% in the last year," U.S. Sen. Roger Marshall (R-Kansas) tweeted. "Imagine being retired, with 8.5% inflation, your purchasing power has been significantly diminished."
According to the BLS, real average hourly earnings decreased 0.8% from February to March, and dropped 2.4%, seasonally adjusted, from March 2021 to March 2022.
Increases in the gasoline, shelter and food indexes contributed most substantially to the seasonally adjusted all items increase. In March, the gasoline index rose 18.3% and accounted for over half of the all items monthly increase, BLS said.
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