(NEXSTAR) – Inflation is far from its peak of 9.1% two years ago, but prices are still on the rise. Consumer prices rose 2.6% year-on-year, the Labor Department said Wednesday.
While certain spending categories are down – fuel oil is 20% cheaper than last fall, for example – inflation is still rising due to higher rent prices, expensive used cars and expensive air travel. .
The main driver of inflation over the past month has been rising rents, which are up 5% from a year ago, according to the latest federal statistics. Housing accounts for the largest portion of many families' budgets, and the census shows that housing is increasingly becoming an issue. Ann Annual Survey of U.S. Households We found that half of renter households are 'rent burdened', spending more than 30% of their pre-tax income on rent.
Overall food prices have increased by about 2% since last year, but some food items have increased more than that. Prices for some cuts of beef rose by 6%, beans by 5% and frozen juices by 14%. Seasoning prices rose nearly 23%.
Eggs have had the largest year-on-year price changes to date, and prices have fluctuated sharply over the past few years. It fell 6.4% last month alone, but rose more than 30% compared to the same month last year.
Used car prices rose 2.7% from September to October alone, after falling for most of the previous months. However, this surge may prove to be an anomaly. Car dealers are mostly rebuilding their inventory after it was depleted due to the coronavirus pandemic, and in some cases had to offer incentives again to attract buyers. . Compared to a year ago, the average used car price is still down 3.4%.
When you buy a car, you need to get insurance, but the premiums have become very expensive. Car insurance plans are up 14% compared to this time last year.
Just because fuel prices have fallen doesn't mean air travel has gotten cheaper. Airfares rose more than 6% from September to October as people prepare for the peak holiday travel season.
Even though inflation has slowed, overall prices are still about 20% higher than they were three years ago.
soaring pricesAmericans are in dire straits economically.He also spoke about the Biden-Harris administration's responsibility to manage the economy, which contributed to Vice President Kamala Harris' defeat in last week's presidential election.
But Donald Trump's victory has heightened uncertainty about where inflation is headed and how the Fed will respond if it accelerates again. President Trump has vowed to curb inflation, primarily by ramping up oil and gas drilling. But mainstream economists have criticized some of his proposals, particularly plans to significantly raise tariffs on imported goods and pursue mass deportations of immigrants.inflation will worsenIf only it were fully implemented.
The Associated Press contributed to this report.
