Monday, October 3, 2022
Bringing the Latest in News Straight to Your Screen


Meat, Used Cars And Peanut Butter: Here’s What Costs More Because Of The Inflation Surge

By News Creatives Authors , in Business , at November 10, 2021

Topline

The consumer price index rose 6.2% in October compared to the same month a year ago—the fastest pace in 30 years—data from the Bureau of Labor Statistics showed Wednesday, and here are the goods with the most significant increases driving the surge.

Key Facts

The energy index rose 30% over the past year, the price of used cars and trucks climbed 26.4%, and beef was up 20.1%.

The price of salad dressing rose 7.7%, fats and oils increased 7.6%, and peanut butter was up 6%.

It got more expensive to furnish homes: The price of furniture for living room, kitchen and dining jumped 13.1%, and bedroom furniture was up 11.8%.

Laundry equipment prices spiked 14.9% and televisions were up 10.4%.

Travelling came at a higher cost, with car and truck rental prices up 39.1% and the price of staying at hotels and motels increasing 25.5%.

The price of jewelry was up 7.5%.

Surprising Fact

The price of a few goods fell in October over the past year. Food prices at elementary and secondary schools dropped 58.5% after seeing a 6.1% decline last month. Smartphone prices declined 20.7%, while the price of telephone hardware and calculators fell 15.1%. Health insurance prices dropped 6.4%. Airline fares were down 4.6%.

What To Watch For

Americans’ heating bills could jump as much as 54% this winter compared to last year, according to the Energy Information Administration. The agency said last month that nearly half of Americans who use natural gas to warm their homes could pay 30% more for heating this winter. Heating bills are expected to increase even if the winter turns out to be warmer than previous years. The agency said that households that use natural gas for heating are on track to pay 22% more for heating if the winter is 10% warmer and spend 1.5 times more if the winter is 10% colder.

Tangent

After the release of the CPI data, President Joe Biden said in a statement that reversing the trend is a “top priority” for him. He added that it is “important” for Congress to pass the Build Back Better plan—which he said is “fully paid for and does not add to the debt”—would reduce the cost of child care and elder care, ultimately allow more Americans to get back into the job market. But House Minority Leader Kevin McCarthy (R-Calif.) tweeted that Democrats “are focused on spending trillions that will only make this crisis worse,” referring to inflation.

Key Background

Other notable figures in the CPI reporter is the price of natural gas, which rose 6.6% in October from the previous month, recording its largest monthly increase since March 2014. The price of electricity increased 1.8%, marking its largest monthly increase since May 2014. The energy index rose 30%—its largest annual increase since September 2005— over the past 12 months in October, as the price of fuel oil skyrocketed 59.3% on the heels of a 12.3% rise in September and motor fuel surged 49.6% last month.

Further Reading

‘Meatflation’ Worsens As Beef Prices Hit Steepest Rise In 30 Years (Forbes)

A Winter of Giant Gas Bills Is Coming. Are You Ready? (Wall Street Journal)

Comments


Leave a Reply


Your email address will not be published.