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Despite signs of slowing inflation, the cost of buying basic goods remains rising, continuing to burden Americans who have suffered from soaring prices over the past 22 months.
The Consumer Price Index (CPI), which measures the price of daily necessities including food, gasoline and rent, rose 0.3% in January from the previous month, the Labor Department said on Tuesday. Consumer prices rose 3.1% from the previous year.
The measure is below December’s inflation rate of 3.4%, but still above the Federal Reserve’s 2% target.
read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards
Falling prices for energy and many goods are helping to curb inflation, but basic prices such as housing, food and auto insurance continue to rise.
Overall, consumer inflation increased by 19.6% compared to January 2020.
Here’s what the latest inflation numbers from the Bureau of Labor Statistics mean.
Shelter costs remain high
Few Americans feel the effects of inflation more than renters in this country.
Despite a surge in apartment construction in 2023, rents still rose 6% year-on-year. Although the measure is the 10th consecutive month of decline from a peak of 8.2% in March, it still puts a strain on tenants’ finances.
However, rising vacancy rates may incentivize landlords to lower their asking rents. According to , asking rents fell 0.8% in December to an average of $1,964 nationwide, marking the third consecutive month of decline.
Still, rents continue to rise in areas with less construction, such as the Midwest and Northeast. In the Midwest, asking rents rose 3.7% year over year to $1,434 as of December. In the Northeast, rents rose 1.7% annually to $2,439.
By contrast, December rents in the South fell 1% to $1,632 and in the West fell 0.6% to $2,346, Redfin found.
Home repairs and utility bill increases
It has become expensive to keep a home in good condition.
Repair prices for household goods in January rose 18.2% from the same month last year, hitting a record high. This includes basic upkeep such as appliance repair, pest control, and gardening.
Water and sewage maintenance costs increased by 5.2% compared to the previous year, and garbage collection fees increased by 6.4% compared to the previous year.
Some food prices continue to rise
Food inflation, a thorny issue for many households, also rose 0.4% from December to January, up 2.6% year-on-year.
Grocery costs rose 0.4% over the past month, the largest increase in a year, and were up 1.2% year over year.
Some foods remain expensive. Frozen juices and beverages increased 29% year over year and 9.9% from December. Meanwhile, beefsteak prices rose 10.7% from a year ago to $11.64 per pound, according to data from the St. Louis Fed.
According to BLS research, sugar prices rose 7.2% from a year earlier, and spice prices rose 4.6%.
However, egg prices have fallen by 28.6% since January 2023. That means 12 Grade A eggs sold for $2.52 last month, down from $4.82 a year ago, according to the St. Louis Fed.
Although food prices continued to rise, eating out costs also did not improve, increasing by 0.5% compared to December and 5.1% compared to the same month last year.
Eating at restaurants is up 4.3% from a year ago, and even buying quick snacks from vending machines is up 10.6%.
“Consumers are still feeling the pinch of rising prices for the things they buy most often,” said Lisa Sturtevant, chief economist at Bright MLS. “Food prices have increased by more than 25% compared to January 2020, just before the pandemic began.”
Operating costs are rising
Another hit to consumers’ wallets was auto insurance, which increased 20.6% in January compared to the same month last year. This is equivalent to the largest increase since 1985.
read more: Tips for getting cheap car insurance in 2024
Owning a car in general seems to be getting more expensive. Automotive maintenance and service increased by 5.7% year-on-year, and repairs increased by 7.9%.
Meanwhile, parking fees and tolls increased by 4.8% compared to January 2023 and by 1.8% from December.
On the bright side, consumers felt some relief at the petrol pumps.
Gasoline prices (all types) in January fell by 6.4% compared to the same month last year, and by 1.5% compared to the previous month.
People looking to buy used cars and trucks also got a break. Used cars recorded an annual decline of 3.5% over the same period, and were down 3.4% compared to December.
Certain drugs are on the rise
Prescription drug prices have barely increased, while over-the-counter drug prices continue to soar.
Over-the-counter drug prices rose 9.2% year-on-year, while prescription drug prices rose only 0.4%. Overall, pharmaceuticals increased by 3% year-on-year, but decreased by only 0.6% month-on-month.
Being a sports fan just got more expensive
It costs money to support your favorite team.
Specifically, tickets for sporting events increased by 13.5% compared to a year ago. The cost of participating in recreational clubs, fraternities and other sports club organizations also increased by 3.1%.
For example, the average price of an NFL ticket was $120.94 in 2023. According to Statista, this is up from his $111.75 in 2022, and his low of $62.38 in 2006, when the statistic first started being tracked.
Those services also recorded an increase when live streaming events.
Cable, satellite, and live streaming television services grew 5.7% year-over-year in January 2024 and 0.6% month-over-month. The number of video subscribers also increased by 2.9% from the previous year.
For example, in January, Fubo TV increased the price of subscription plans for its existing customer base by $5 if they subscribed to a Pro, Elite, or Premier plan. These members were considering a new price range between $79.99 and $104.99 per month, not including fees and taxes.
Meanwhile, those who subscribe to Fubo TV’s regional sports network faced a $1 monthly price increase, raising membership fees to between $11.99 and $14.99 per month.
Pet care costs increase
Pet owners are also struggling under the weight of inflation, as the cost of food, veterinary care and supplies continued to rise last year.
Veterinary services increased by 9.6% year-on-year in January 2024, marking the highest growth rate ever.
Rising costs over the past year have caused some pet owners to delay veterinarian visits, according to data from the American Veterinary Medical Association. Veterinary practice revenue increased by an average of 5.7% from August 2021 to August 2023, but customer count decreased by 2.7%, suggesting some customers were forced to decline medical care for their pets. are doing.
Animal lovers are also seeing other costs rise. Pet food increased by 4.8% in the past 12 months, and the cost of pet supplies and accessories also recorded an increase of 0.5% from January 2023.
According to research from the St. Louis Fed, pet food costs overall have increased by more than 23% since January 2020, despite showing subtle signs of decline since October 2023.
what’s next
Although inflation has fallen significantly from its peak of 9.1% in June 2022, daily prices have failed to reflect an overall sense of security.
“Remember that falling inflation doesn’t mean prices for most things are falling, it just means prices are rising more slowly,” Sturtevant said in an emailed statement. It’s important to keep it that way.”
Overall, compared to January 2020, just before the pandemic began, food prices are up more than 25%, gas prices are up about 20%, and rent is up 22%.
Gabriela Cruz Martinez I’m a personal finance and housing reporter for Yahoo Finance. Follow her on X @__Gabriela Cruz.
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