Inflation in the US accelerated further in March from a high level.

Consumer prices rose 8.5 percent year-on-year, the Department of Labor said in Washington on Tuesday.

This is the highest rate of inflation since the end of 1981, in just over 40 years.

In the previous month, the rate was 7.9 percent.

Analysts had expected an average acceleration of 8.4 percent.

According to the ministry, the biggest price drivers were fuel, rents and groceries.

Gasoline prices alone rose 18.3 percent month-on-month, accounting for more than half of the increase.

The prices of other energy sources also increased significantly.

Core prices excluding energy and food rose 6.5 percent year-on-year and 0.3 percent mom.

This was slightly below market expectations in each case.

The US Federal Reserve's inflation target of two percent has been exceeded for some time.

The Fed has already indicated that it will significantly tighten its monetary policy.

Interest rate increases of more than two percentage points are expected on the financial markets for this year alone.

In addition, the Fed wants to quickly melt down its trillion-dollar balance sheet.