All eyes on the Fed: Fund managers react as US inflation hits 8.5%

Highest since 1981

Elliot Gulliver-Needham
clock • 3 min read

US inflation hit 8.5% in March, up from 7.9% in February and its highest level since 1981.

The US Bureau of Labor Statistics reported that inflation had "continued to accelerate," with gasoline prices accounting for over half of the increase, rising 18.3% in March. The disparity between the CPI and ‘core CPI' that excludes volatile food and energy price fluctuations has grown particularly wide due to the abnormal rise in fuel prices. Hinesh Patel, portfolio manager at Quilter Investor, noted that "while used car prices and other non-essential items have begun to reach their price peak, the headline figures illustrate how much of this is an energy-related shock." However,...

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