Americans who have been hit by rising prices over the past 22 months continue to face the strain as the cost of meeting daily needs remains high despite signs of slowing inflation.
The Labor Department said Tuesday that the Consumer Price Index (CPI), a broad measure of prices for everyday goods, including groceries, fuel, and rent, rose 0.3% in January. from last month. Consumer prices were 3.1% higher than a year earlier.
While that measure is below the 3.4% inflation reading in December, it remains above the Federal Reserve’s 2% target.
Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards
Falling prices for energy and many commodities are helping to moderate inflation, but basics such as housing, food, and auto insurance have continued to rise.
Overall, consumer inflation was 19.6% higher than in January 2020.
Here’s what the latest inflation numbers from the Bureau of Labor Statistics mean for you:
Housing costs remain stubbornly high
Few Americans have felt the effects of inflation more than the nation’s renters.
Despite a surge in apartment construction in 2023, rents still jumped 6% from last year. While that measure has cooled for 10 straight months from a peak of 8.2% in March, it’s still straining renters’ finances.
But rising vacancy rates could prompt 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 declines.
However, regions that haven’t been building like the Midwest and Northeast have continued to see rent increases. In the Midwest, asking rents rose 3.7% year-over-year to $1,434 in December. While in the Northeast, rents rose 1.7% annually to $2,439.
By comparison, rents in the South fell 1% in December to $1,632, and fell 0.6% to $2,346 in the West, Redfin found.
Household repairs and climbing equipment
Keeping your home in order has also become more expensive.
Home appliance repair prices rose 18.2% year over year in January, a record high. This includes things like household repairs, pest control, and basic maintenance like gardening.
Water and sewage maintenance increased by 5.2% on an annual basis, and the price of garbage collection increased by 6.4% from last year.
Some food prices continue to rise
Food inflation, a sore point for many households, also registered an increase of 0.4% from December to January and rose 2.6% year-on-year.
Grocery costs rose 0.4% over the past month — posting the biggest jump in a year — and were 1.2% higher than a year ago.
Some foods remain stubborn. Frozen juices and drinks jumped 29% year over year, an increase of 9.9% since December. Meanwhile, beef steaks cost 10.7% more than they did a year ago, at $11.64 per pound, according to data from the Federal Reserve Bank of St. Louis.
Sugar rose 7.2%, and spices rose 4.6% from a year ago, the BLS found.
The price of eggs, however, is down 28.6% from January 2023. In other words, a dozen grade A eggs sold for $2.52 last month, down from $4.82 last year, according to St. Louis Fed.
While groceries continued to rise, spending on eating out didn’t improve either, up 0.5% from December and up 5.1% from last year.
Restaurant meals rang in 4.3% higher than a year ago, and even getting quick snacks from vending machines rose 10.6%.
“Consumers are still feeling the pinch of higher prices for the things they buy most often,” said Lisa Sturtevant, chief economist of Bright MLS. “Compared to January 2020, before the start of the pandemic, food prices have increased by more than 25%.”
The cost of driving is increasing
Another blow to consumers’ wallets was auto insurance, which rose 20.6% year over year in January. That equates to the largest increase since 1985.
Read more: Tips for getting cheap car insurance in 2024
Car ownership in general seems to have become more expensive. Motor vehicle maintenance and servicing increased by 5.7% year-on-year, while repairs increased by 7.9%.
Meanwhile, parking and toll fees were 4.8% higher than in January 2023, up 1.8% since December.
On the bright side, consumers have found some relief at the gas pump.
Gasoline prices (of all types) fell 6.4% year over year in January and are down 1.5% from the previous month.
Those in the market to buy a used car or truck also broke even. Used cars registered an annual decline of 3.5% over the same period and were 3.4% lower than December.
Some drugs increase
While prescription drug costs have grown slightly, over-the-counter drugs are on a hot streak.
The cost of non-prescription drugs rose 9.2% compared to a year ago, while prescription drugs rose only 0.4%. Overall, prescription drugs were 3% higher than a year ago, down just 0.6% month over month.
Being a sports fan just got more expensive
Backing your favorite team will cost you.
In particular, tickets to sporting events are up a whopping 13.5% from last year. The cost of joining a recreational club, fraternal, or other sports club organization also increased by 3.1%.
For example, an NFL ticket will cost an average of $120.94 in 2023. According to Statista, that’s up from $111.75 in 2022, and down from $62.38 in 2006 when it first started tracking that metric.
If you livestream the event, those services also registered an increase.
Cable, satellite, and livestreaming television services rose 5.7% year over year in January 2024 and rose 0.6% from a month earlier. Video subscriptions are also up 2.9% from last year.
Fubo TV, for example, raised its subscription plan by $5 to its current customer base in January, that is if you’re on any Pro, Elite, or Premier plan. Those members are looking at a new price point between $79.99 and $104.99 per month, excluding fees or taxes.
Meanwhile, those who subscribe to Fubo TV’s regional sports network face a $1 monthly increase, bumping their membership between $11.99 per month and $14.99 per month.
The costs of pet ownership are rising
Pet owners have also struggled under the weight of inflation as the costs of food, veterinary care, and supplies have continued to rise this past year.
Veterinary services jumped 9.6% from last year in January 2024, the highest increase on record.
Rising costs over the past year have caused some pet owners to delay visiting the vet, according to data from the American Veterinary Medical Association. While veterinary practice revenue increased by an average of 5.7% between August 2021 and August 2023, the number of clients decreased by 2.7%, suggesting that some clients had to forego medical care for their pets.
Pet lovers saw other costs rise: Pet food rose 4.8% over the past 12 months, and the cost of pet supplies and accessories also rose 0.5% from January 2023.
Overall, the cost of pet food is just over 23% higher than in January 2020, St. Louis Fed, despite showing subtle signs of easing since October 2023.
what next
Although inflation has fallen sharply from its peak of 9.1% in June 2022, daily prices have failed to show relief across the board.
“It’s important to remember that a lower rate of inflation doesn’t mean that the prices of most things are falling — rather, it just means that prices are rising more slowly,” Sturtevant said in an email. that statement.
Overall, food prices are up more than 25%, gas prices are about 20% higher, and rents are up 22% compared to January 2020, before the start of the pandemic.
Gabriella Cruz-Martinez is a personal finance and housing reporter at Yahoo Finance. Follow him to X @__gabriellacruz.
