As prices climbed for the third straight month, reaching 5.4 percent year-over-year, inflation has reached a 13-year high as every aspect of American life gets more expensive, from food to clothing to travel and more.
Inflation rises to top 13-year record
The Bureau of Labor Statistics released its latest statistics from the monthly Consumer Price Index on Tuesday and the numbers weren’t good.
In June, for the third straight month, consumer prices rose, jumping by 5.4 percent over the last 12 months, NBC reported. Prices rose higher than the 5% economists had predicted.
The consumer price index rose 0.9% in June versus May, which represents the largest one-month increase in 13 years, CNN reported.
As America’s economy attempts to reopen, consumer demand is outstripping supply, which diminished during the pandemic.
Where are prices increasing most?
With inflation rising by 5.4 percent year-over-year, sending the price of everything up, that’s not an across-the-board number for all goods and services. Prices have gone up by nearly double that number for some items.
The price of used cars tops the list, rising 10.5 percent. Food prices increased 0.8 percent in June. When you factor in a 0.4 percent increase in May, food prices are 1.2 percent higher than they were in April.
Home prices are 20 percent higher than last year. Takeout food is 4 percent higher, and clothing is 5 percent higher.
New car prices are 12 percent higher. Experts say the cause is short supply and the shortages mean consumers are unlikely to see or negotiate deals with auto purchases. Nearly two-thirds of car buyers were paying within 5% of the sticker price in May, and some paid, even more, CNN Business reported.
Gas prices continue to climb
Last week, AAA reported that gas prices had increased 40% since the beginning of the year.
“The national gas price average has increased 40% since the start of the year, from $2.25 on January 1 to $3.13 today,” AAA reported last Tuesday. “Moreover, it is not stopping there. Motorists can expect gas prices to increase another 10–20 cents through the end of August, bringing the national average well over $3.25 this summer.”
Today, AAA’s daily gas list of the national average per gallon for regular unleaded gasoline was at $3.146 as of 7/13/21.
California had the highest price at $4.313, followed by Hawaii at $4.052, Washington at $3.863, Nevada@ at $3.804, and Utah at $3.740.
Mississippi had the lowest price at $2.768, followed by Louisiana at $2.796, Alabama at $2.827, Texas at $2.828, and Missouri at $2.828.