Concerns around inflation are on the rise in the U.S., after the government released the latest data on consumer prices for goods and services in April, which shot up 0.8 percent.

The year-over-year inflation increase reached the fastest rate since the 2008 recession, going up 4.2 percent, according to U.S. Bureau of Labor Statistics.

The news unsettled financial markets, raising concerns that it could weaken the economic recovery as the country grapples with the COVID-19 pandemic.

The acceleration in prices has been spread out across different industries.

The inflation index for used cars and trucks rose 10 percent in April, the largest monthly increase since the series began calculating data in 1953. New cars went up by 0.5 percent, the largest increase since last July. 

Food prices saw a spike of 0.4 percent with prices for groceries and restaurants going up.

Energy prices, a major driver in inflation in the past few months, saw a slight decline in April by 0.1 percent, but over the past 12 months, energy prices went up by 25 percent.

The numbers have caused concerns within the federal government, businesses and investors.

The Federal Reserve, headed by Jerome Powell, believes the inflation will be short lived, as supply chain bottlenecks are corrected, and parts and goods begin moving normally again.

Recent issues in the global supply chain, including the Suez Canal incident in March after a massive cargo ship got stuck and the hack of a major U.S. pipeline last weekend, have added to worries about inflation.

A widespread shortage of raw materials and parts is also magnifying costs across the board.

This news still has shaken investors, with stocks taking a tumble on Wednesday, although the markets rebounded on Thursday.

Economists are also warning that gas prices could continue to go up, even after Colonial Pipeline restarted its operations following the cyberattack.

Powell said the Fed does have "tools" to deal with higher inflation, but there are concerns that even things like raising short-term interest rates could slow the economy or cause a recession.

Joseph Sullivan: Biden's stimulus policy hurting the global poor

Like its blatant vaccine nationalism, the administration's unchecked stimulus policies are hurting the world – especially the global poor, said Joseph Sullivan, a senior advisor at the Lindsey Group and a former special advisor and staff economist at the White House Council of Economic Advisers during the Trump administration.

Biden's $1.9 trillion stimulus has ignited a global food inflation for the world's poor, who spend a large part of their meager incomes just on food, by preventing any such rise in local currencies relative to the U.S. dollar from offsetting the rise in food commodity prices wrought by the Fed, Sullivan wrote in May in an article published by Foreign Policy.

The connection between Biden's economic agenda and the food budgets of households abroad runs through the dollar's role in global commodity markets. When the U.S. Federal Reserve explodes its balance sheet and prints dollars, as it has been doing, it's usually followed by increases in the price of such food commodities as corn, soybeans, and wheat. This is because transactions in these markets, just as most global markets, are typically denominated in U.S. dollars, he said.

And if the Fed is pumping trillions of new dollars into the financial system, there are more dollars to buy the same bundle of stuff, and food commodities are stuff. It's why so many prices have been skyrocketing, including not just of food but of lumber, copper, U.S. residential real estate, and U.S. stocks, he added.