Prices on goods went on a steady climb following the end of restrictions from the COVID-19 Pandemic, as supply chains became bottle-necked and demand grew for items that had been less sought after during lockdowns. While some prices have begun to ease, many things are still at record highs, and families are continuing to feel the pinch.
The latest figures from the January Consumer Price Index have been less than promising, showing that while cooler than previous numbers, Inflation actually rose 0.5% in January, an increase over the 0.1% growth in December. Overall, it also found that year-over-year, prices on average were up 6.4% from a year earlier.
As for why prices continue to remain stubbornly high, despite attempts to quell inflation with interest rate hikes which slowed the housing market, the effects are still being felt from events like the continued Pandemic, which has still led to shutdowns at times, the ongoing Russo-Ukraine War, and a severe outbreak of Avian Flu. Regardless of the reasons, this means struggling families are continuing to find it hard to afford essential items and needs.
While some items have seen decreases in prices (according to CNBC), with televisions, used cars and trucks, computers, women’s dresses, major appliances, bacon and uncooked beef steaks all dropping between 3 and 13.2%, there likely isn’t enough of a price drop to offset the increases elsewhere. Food prices overall are up 10.1%, while energy is up 8.7%. Rents are also up 8.6% as well.
When it comes to further breaking down those categories, it’s clear that families are still seeing the hardest hit at the grocery store. Thanks to the Avian Flu, eggs have skyrocketed in price by 70.1%, with Chicken also rising by 10.5%. Butter and Margarine are also up at 32.5%, with frozen vegetables, lettuce, cereal and bakery products, pet food and milk also seeing increases between 10-20%.
Energy costs are also causing a major pinch on wallets, with Fuel Oil up 27.7%, Utility gas service up 26.7% and Electricity up 11.9%. Even items such as motor vehicle insurance have increased, up 14.7%.
Fuel oil has been a touchy subject for many, after prices sky-rocketed to record highs in 2022 following the onset of the Russo-Ukraine war. Though nowhere near the record high of $5.01 per gallon average nationally for regular unleaded gasoline in June 2022, according to AAA, the average cost for a gallon of gas in the United States was $3.417 on Feb. 18. The highest average price of gas in the country is seen in five states, with Hawaii averaging $4.889 per gallon, followed by California ($4.720), Nevada ($4.208), Washington ($4.182) and Colorado ($4.105). The state with the cheapest average price is currently Texas, where the average is sitting at $3.019.
Overall, while the average is down for the week, it’s still higher than it was a month ago when AAA averaged the price of gas to be sitting at $3.359. It’s particularly nerve-wracking as the average price a year ago was $3.528, just eleven cents higher per gallon on average than it currently is.
It’s unclear if, or when, prices may finally start to come down, meaning many Americans are going to continue facing the struggle.
