Car insurance and restaurant menu prices are still rising
of ConsumerAffairsInflation ended 2024 by moving slightly higher. The U.S. Bureau of Labor Statistics reports a 0.4% increase in the Consumer Price Index for All Urban Consumers (CPI-U) on a seasonally adjusted basis for December.
That follows a 0.3% rise in November. The biggest drivers of inflation in December were energy and shelter.
The energy index climbed 2.6%, contributing to over 40% of the overall monthly increase. Within the energy sector, gasoline prices were up by 4.4%. Food prices also saw an uptick, with the index for food rising by 0.3%, affecting both food consumed at home and away from home.
Food consumed at home, the category for grocery prices, rose 0.3% in December but was only 1.8% higher over the last twelve months. The price of cereal and bakery items made the sharpestmove in December, jumping 1.2%.
The price of meat, fish and eggs gained 0.6% last month and was up 4.2% on the year, with eggs accounting for most of the increase.
Restaurant prices still rising
Food consumed away from home the category for restaurant prices rose 0.3% in December and was 3.6% higher on the year, double the rate of food consumed at home.
Excluding food and energy, the index for all other items rose by 0.2% in December, a slight deceleration from the 0.3% increases observed in the previous four months. Notable increases were seen in the indexes for shelter, airline fares, used cars and trucks, new vehicles, motor vehicle insurance, and medical care.
The cost of car insurance rose 0.4% in December and was up 11.3% for 2024. The cost of rent increased by 0.3% in December and gained 4.3% in 2024.
A few things cost less
Conversely, personal care, communication, and alcoholic beverages were among the few categories that experienced price declines.
Over the past year, the all-items index increased by 2.9%, up from the 2.7% rise recorded in the 12 months ending in November. The core index, which excludes food and energy, rose by 3.2% annually. While the energy index saw a slight annual decrease of 0.5%, the food index increased by 2.5% over the same period.
These figures highlight the ongoing challenges faced by consumers as energy and food prices continue to exert upward pressure on overall inflation, influencing economic decisions and policy considerations.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-15 14:30:07
