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.
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 :
- Rental cars: 42.9%
- Gas: 42.1%
- Used cars: 24.4%
- Hotels: 18%
- TVs: 12.7%
- Furniture: 11.2%
- Meats, poultry, fish, and eggs: 10.5%
- New cars: 8.7%
- Appliances: 7.1%
- Electricity: 5.2%
- Restaurant prices: 4.7%
- Rent: 2.9%
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.
“The rise in shelter costs will exacerbate the negative financial impact so many households are feeling from higher prices,” McBride said.