Americans are facing big financial challenges as rising costs and inflation put a strain on our wallets, causing nearly two-thirds of all U.S. households to operate on a paycheck to paycheck basis. From basic goods such as clothing, toiletries, and food to the ever-soaring gas-prices people from all walks of life are feeling the pinch. And, reports are pointing to disappointing news as experts note that these inflation prices will not be decreasing anytime soon. In fact, the inflation rates are predicted to continue trending towards higher and higher price points. But, which products have been most affected by this unprecedented inflation?
At A Glance
- 2022 has seen the highest inflation rates to hit the economy in over 40 years.
- The consumer price index is steadily climbing.
- These numbers aren’t projected to improve anytime soon.
- Prices are increasing across-the-board from food items, to household goods, and transportation.
- The highest increases in cost, percentage-wise land within the transportation industry, reports say.
Inflation Is At A 40-Year High – But Where Are these Rising Costs Hitting Shoppers the Hardest?
According to reports released by the Bureau of Labor Statistics, inflation rates are rising at a rate we haven’t seen since about 40 years ago. And, the reports note, the consumer price index is soaring to a shocking increase of 7.9% annually. This number has even increased in recent weeks, jumping up from January’s already increased annual rates of 7.5%. Today’s inflation rates have even surpassed previous record rates from 1982 when the annual rate of rising costs was at a high of 7.6%.
So, what does this mean for today’s consumers? What products can we expect to see hit the hardest by these soaring cost increases? According to the experts, the areas facing the highest inflation costs for consumers are cars and trucks; as well as the energy industries. These areas lead the pack in price increases while the hotel industry holds a top spot as well. The food and drink industries are seeing marked increases, however, these inflation rates are trending just a bit lower than the products within the other categories.
The Price Of Vehicles And Fuel Continue To Trend Upwards
This year, the average price of a used car or truck surged upwards by as much as 41.2% by February, notes a Fox News report. The cost of a new car or truck jumped up as well, but not quite as high. The new vehicles are currently seeing price increases within the 12% range. Additionally, the cost of parts and equipment has increased by as much as 14.3%.
The fuel industry is the one that is taking everyone by surprise. By February 2022, consumers were facing oil prices that had increased by as much as 43.6% compared to last year, Fox News notes. Gasoline prices have increased by 38% and utility gas prices have increased 23.8%. Electricity has seen the lowest impact with just a 9% increase.
Household Costs and Food and Drink Prices Aren’t Escaping the Soaring Inflation Rates
According to reports the cost of fish, poultry, and eggs, has increased 13% so far in 2022. Bacon prices have seen an increase of about 18.8% while beef and veal prices have risen over 16%.
Additionally, the cost of milk has increased by over 11 % and coffee has increased by more than 10%. Fresh fruit and vegetable prices have increased by nearly 8%.
On the household front, furniture and bedding costs have increased by 17.1% while items such as tools and outdoor equipment and supplies have increased by nearly 11%.