Key takeaways: 

• Headline CPI in March grew by 8.5% from a year ago, the most rapid annual growth since December 1981 and one-tenth of a percentage point beyond the estimate.
• Surging food, energy, and shelter prices helped account for the gain.
• Actual worker wages dropped by 0.8% as living expenses outpaced otherwise substantial pay gains.

According to Labor Department data released Tuesday, customers' costs on regular items surged in March to their highest levels since the earlier days of the Reagan administration.

The buyer price index, which calculates a wide-ranging basket of goods and services, bounced 8.5% from a year back on an unadjusted basis, exceeding even the already advanced Dow Jones estimate for 8.4%.

According to the anticipation, the CPI rose 6.5% besides food and energy.

The data mirrored price gains not seen in the U.S. since the stagflation days of the late 1970s and early '80s. March's headline reading was the most increased since December 1981. Core inflation was the hottest since August 1982.

Nevertheless, core inflation appeared to decrease, increasing 0.3% for the month, less than the 0.5% estimate.

Despite the gains, markets responded positively to the news. Stock market futures advanced, and government bond yields fell.