Everyday Items That Are More Expensive Due To Inflation – Forbes Advisor
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America has an inflation problem. The November CPI inflation report shows that consumer portfolios continue to suffer the brunt of the highest inflation in years.
Prices in November jumped 0.8%, according to the Bureau of Labor Statistics. And while this is a 0.1% drop from October, there’s not much to get excited about; The price of goods and services rose 6.8% from November 2020 to November 2021, the largest 12-month increase since 1982.
Everyday household purchases, from food to clothing to gasoline, are significantly more expensive than they were a year ago. What the Federal Reserve once saw as “transient inflation” now persists much longer than expected – and Americans continue to feel the pain in their wallets.
Items that are more expensive due to inflation
These items have seen some of the highest gains over the past 12 months:
- Meats, poultry, fish and eggs: 12.8% increase
- Snacks: 5.9% increase
- Soft drink: 5.3% increase
- Coffee: 7.5% increase
- Furniture and bedding: 11.8% increase
- Women’s dresses: 8.6% increase
- Jewelry and watches: 5.2% increase
- Rental of main residences: 3% increase
Things like gasoline and airline tickets have seen giant price increases over the past year, in part due to falling prices due to lack of demand at the start of the pandemic (cars and used trucks, for example, saw their prices increase by 31.4% compared to November 31, 2020 to November 2021).
The price increase is national, with little difference between regions. The CPI report found that the Midwest saw a 7.3% increase in prices during the year, with the south trailing behind with a 7.2% increase.
When can consumers expect relief from high inflation?
Inflation first became an issue in the spring of 2021, as the country emerged from strict Covid-19 protocols. A mixture of rebounding demand, supply chain issues, and labor shortages have started to push prices up, but they haven’t really stopped yet.
The Federal Reserve has devised a plan to curb the rise in prices. In December, he announced he would buy fewer bonds over time and implement three interest rate hikes in 2022 to counter the surge in prices.
But some economists believe the action may not be enough to provide relief. There are two other culprits that continue to drive prices up – supply chain bottlenecks and budget spending (the money the government spends) – and the Federal Reserve has no control over them. .
Congress continues to fight for a $ 1.7 trillion social spending plan, and some experts warn it could take years for the global supply chain crisis to finally resolve.
For now, consumers should expect to live with inflation a little longer.
Read more: Why is inflation rising right now?