According to the Bureau of Labor Statistics, U.S. inflation hit a multidecade high last month as gas prices and rents skyrocketed. Inflation climbed to 8.5%, the highest rate since December 1981, and an increase from February’s 7.9%.

Gas prices jumped 18.3% over February and 48% year over year (YOY). Rental rates have increased for eight consecutive months and are now above pre-pandemic levels, up 22.0% year over year. Other categories that hit at or near record highs in March included groceries (+10.0% YOY), new cars (+12.6% YOY) and home furnishings (+10.8% YOY).

“Robust pay increases have been no match for the higher costs households are facing on rent, food, electricity, gasoline, and a pervasive list of both goods and services,” Bankrate.com Chief Financial Analyst Greg McBride said in a note Friday. “The buying power of Americans is being squeezed more and more each day, and you see this reality reflected in the dour consumer sentiment readings.”

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