We're currently experiencing the worst inflation of a lifetime.
Many on social media are talking about the recent jump in inflation, especially from February to March. One user said that today’s inflation is beyond anything seen in a lifetime. The post was then liked or retweeted more than 25,000 times.
Misbar discovered there was a jump in prices of many goods in services the first quarter of 2021. According to CNBC.com, fuel costs have risen sharply with a 30% rise in oil prices since the beginning of the year and lumber prices in the futures market are at an all-time high as just two examples. Consumer prices moved 2.6% higher in March compared with a year ago according to the Washington Post. Food prices are up 3.5% in the last twelve months according to the U.S. Bureau of Labor Statistics.
However, it is untrue that the recent price jumps are the worst in a lifetime. Consumer prices in March were up 2.6% compared to a year ago, but there have been many times over the last 20 years that inflation has been higher according to the U.S. Bureau of Labor Statistics.
In the 1980s, inflation was up around 14%, more than five times what we are seeing today according to Macrotrends.com.
The increase in inflation has yet to have a detrimental impact on the stock market. The S&P 500 profit growth was 30% for the first quarter, making it the best three month period in the last decade according to CNBC.com. Federal officials have stressed that the uptick in inflation will probably be short-lived, as parts of the economy begin to normalize after more than a year of the pandemic. The next inflation update is scheduled for release on May 12, 2021.
The last inflation report did show an increase in inflation over the last twelve months. However, the increase was relatively modest compared to the last thirty years and was by no means the most inflation that has been seen in a lifetime.