Inflation - Product prices that increased the most

Inflation: Product prices that increased the most

WHAT YOU NEED TO KNOW:


  • Prices for goods have been continuing to rise since the past year.
  • The consumer price index rose 0.4% in September while prices increased 5.4% year-over-year.
  • The highest increase in prices involved vehicles and gas, believed to be caused by low inventory and the ongoing chip shortage.

With the pandemic causing a stir in the availability of products and services, consumers have been bearing the brunt of continuing price inflation over the past year.

According to a report from the Labor Department on Wednesday, the consumer price index, which measures changes in how much goods and services cost, rose 0.4% in September. Prices increased 5.4% year-over-year, which constitutes the biggest spike since January 1991.

Take a look at the list of the products and services which increased prices the most over the past year :

  1. Rental cars: 42.9%
  2. Gas: 42.1%
  3. Used cars: 24.4%
  4. Hotels: 18%
  5. TVs: 12.7%
  6. Furniture: 11.2%
  7. Meats, poultry, fish, and eggs: 10.5%
  8. New cars: 8.7%
  9. Appliances: 7.1%
  10. Electricity: 5.2%
  11. Restaurant prices: 4.7%
  12. Rent: 2.9%

Inflation causes

The pandemic has definitely had a hand, along with several other issues.

The increase in prices of cars can be attributed to low inventory and the ongoing chip shortage.

Airfare and other travel expenses also seem a lot more expensive this year, but that was because prices had decreased in 2020 due to fewer travelers.

Bankrate chief financial analyst Greg McBride said, “While some of the so-called transitory factors like used car prices, airfares and apparel continue to ease after sharp run-ups in earlier months, inflation is broadening out.”

Economists have assured everyone that inflation is only temporary, but the prices still continue to rise — and Americans are starting to feel the effect.

Compared to the previous year, wages grew only 4.6% in September, which is far below the 5.4% year-over-year price increase.

Increased housing prices, in particular, can prove difficult for the average family.

“The rise in shelter costs will exacerbate the negative financial impact so many households are feeling from higher prices,” McBride said.

 

Source: MSN

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