The price of new cars is up 9%. The price of used cars is up 24%. The price of hotels is up 18%. Appliances – up 7%. Furniture – up 11%. Rent – up 3%. Electricity – up 5.2%. New homes – up 16.2%. And the price of gas is up a whopping 40%.
Inflation is the #1 problem in the country, according to a recent Quinnipiac survey. And there’s no sign of it going down. You wouldn’t know it if you were listening to the politicians. We are living in the Inflation Nation.
Food prices rose by half a percent in December alone. The price of milk has risen by 9.2% since 2020. The price of a gallon of milk was $3.79 in January compared to $3.59 a gallon in 2021. That’s 26% higher than in 2018.
Meat prices rose the most of all food-at-home in 2021– the beef and veal category increased by 9.3%. The price of a boneless chuck roast went up by 28% last year. In 2022, food prices are predicted to increase between 1.5 and 2.5 percent, according to the U.S.D.A.
The price of gasoline soared 40% in the 12 months ending in January 2022, according to the Bureau of Labor Statistics. The average price was $2.50 a gallon in 2020. Today it’s $3.51. In California, it’s $4.73!
New car prices? Fuggedaboutit! The average price of a new car was $46,329 in November. That’s $5,392 more than just one year ago – a 13% gain.
And if you’re in the market for a new home, make sure you bring along your life preserver. New home prices have gone up 16.2% – the fastest period of price growth in recorded history – even outpacing the housing bubble of 2008. The average price of a home in America is now a mind-boggling $374,000.
It’s like a twist on Newton’s law of gravity – everything goes up and stays up – and then goes up even more. When will prices go down?
Don’t hold your breath. Even though the Federal Reserve intends to raise Interest rates in March to fight inflation, don’t expect the price of food or gas to come down anytime soon. Neel Kashkari, President of the Federal Reserve in Minneapolis, expects inflation will fade to around a 3% annual rate by the end of the year.
If inflation stays elevated for too long, it can lead to hyperinflation. But if the Fed raises interest rates too quickly, it can cause a recession – so they’re walking a fine line.
One thing is certain, prices are not going down in the near future. But if you know of a sustained price reduction on any product or service (excluding a sale or rollback) we’d love to hear about it. As far as we can tell, we’re going to be living in the Inflation Nation for many months to come.
