Prices Are Continuing to Surge: Here’s What’s Becoming the Most Expensive

CHICAGO, ILLINOIS - JUNE 10: Customers shop for produce at a supermarket on June 10, 2021 in Chicago, Illinois. Inflation rose 5% in the 12-month period ending in May, the biggest jump since August 2008. Food prices rose 2.2 percent for the same period. Photo by Scott Olson/Getty Images

Compared with just one month ago, consumers are paying slightly more for most goods and services. Compared with a year ago, however, they’re paying significantly more, according to Labor Department data released this week.

The Labor Department reported that the consumer price index, a key inflation gauge that measures how much Americans pay for goods and services, rose about 0.4 percent in September. The year-over-year prices increased 5.4 percent, which some noted is the largest yearly increase since January 1991.

The agency’s report (pdf), released Wednesday, breaks down how much prices have increased for certain key services and goods, including gas, food prices, electricity, and used cars:

Gas: 42.1 percent

Meats, poultry, fish, and eggs: 10.5 percent

Propane, kerosene, and firewood: 27.6 percent

Fuel oil: 42.6 percent

Electricity: 5.2 percent

Peanut butter: 6.2 percent

Coffee: 4.0 percent

Bacon and similar products: 19.3 percent

Uncooked beef steaks: 22.1 percent

Furniture: 11.2 percent

Used cars and trucks: 24.4 percent

New cars and trucks: 8.4 percent

Rental cars: 42.9 percent

Footwear: 6.5 percent

Motor vehicle maintenance and repair: 4.0 percent

Postage and delivery services: 3.2 percent

Haircuts and other personal care services: 5.0 percent

Sporting goods: 7.5 percent

Appliances: 7.1 percent

Restaurant prices: 4.7 percent

Rent. 2.9 percent

While some economists, including those at the Federal Reserve, have stressed that the current inflation surge is transitory, prices have continued to rise. According to Labor Department data, wages only increased by 4.6 percent compared to the previous year, meaning that inflation is outpacing wage growth.

Analysts have blamed a combination of factors for the spike in inflation, including supply chain disruptions and bottlenecks, energy shortages in the Asia-Pacific and Europe, and COVID-19-related concerns and vaccine mandates.

Queen’s College President and economist Mohamed El-Erian, in an interview on Oct. 11, said he believes inflation is going to become “more and more of an issue for markets” and that it will “separate winners and losers in a significant way.”

But on Wednesday, the Biden administration issued a series of statements, news releases, and announcements that the White House will attempt to alleviate supply chain issues, namely asking shipping companies like FedEx and UPS to dedicate more shifts to deal with bottlenecks. The administration also asked the Port of Los Angeles to work around the clock, seven days a week, amid a backlog of shipping containers.

This week, Republican lawmakers have gone on the offensive against the Biden administration and Democrats, arguing that their policies—including those focused on climate change—have significantly contributed to the year-over-year inflation.

The White House also is weighing steps to address gas shortages and price surges, according to press secretary Jen Psaki, who told reporters Wednesday that Biden “has asked his economic team, as they do on any range of issues impacting the public, to continue to discuss what the options are that we can take to address these shortages.”

Without elaborating, Psaki said that she is “not in a position yet to outline additional steps we can take” and said there is a “range” of steps the Biden administration can take.