Inflation Rise May Trigger Credit Card Debt

The recently published Consumer Price Index for the month of March showed inflation slowly increasing, which could mean consumers will reach for their credit cards to pay for increasingly expensive items like gasoline and food.

The report by the U.S. Bureau of Labor Statistics shows the price index increased a total of 2.7 percent. Included in the findings was the alarming rise in gas prices, which are 14.4 percent higher than they were three months ago. In March alone, petroleum prices went up more than 5 percent.

In the past 12 months, gasoline has risen 27.5 percent, which is not good news for consumers that have to commute to work in their cars.

Food prices also increased during March. Food at home is up 1.1 percent during the month, and 2.9 percent over the last 12 months.

Consumers may begin to accrue credit card debt at the pump as the unexpected high energy costs could catch them off guard. Always make sure to not spend more than you can pay per month, if possible.