- Inflation is close to a 40-year high, so consumers are seeing higher prices across the board.
- For instance, everyday household purchases like groceries and gasoline are more expensive.
- And discretionary spending such as hotel rooms and airfare is also costing consumers more.
There is hope that inflation may be slowing. The Consumer Price Index increased 0.3% in April, which is lower than the 1.2% increase in March. Nevertheless, consumers continue to contend with significantly higher prices than last year.
According to Consumer Reports, “the latest inflation numbers remain near 40-year highs.” Wondering what products are especially overpriced right now? Keep reading! We’ve found 12 of the top products affected by inflation.
If you’re planning a vacation, then prepare for some sticker shock. Hotel rates in resort destinations are 34% higher than in 2019, according to STR data. Prices in some cities have soared even higher. For example, the average hotel price in Miami jumped about 43%.
That means a Miami hotel room that was $300 in 2019 is now about $430. Ouch. Of course, savvy travelers can find deals. Instead of Miami, consider less pricey vacation spots. Pensacola and Myrtle Beach are two beautiful beaches to visit for cheap.
Fingers crossed, you don’t need to replace a car anytime soon because inflation has hit the used car market hard. According to the Consumer Price Index, used car prices increased by nearly 23% from April 2021 to April 2022.
That makes a big difference when you’re talking about something that costs thousands of dollars. Inflation isn’t the only reason used cars have gotten more expensive. A global chip shortage has caused a shortage of new vehicles, so used cars are in greater demand.
Cereals and Bakery Products
If you’ve been grocery shopping lately, then you may have noticed prices have increased across the board. But some groceries have jumped in price more than others. Take cereals and bakery products, for example.
According to the Consumer Price Index, they’ve gotten about 10% more expensive this year. For a specific example, CNBC compared the price of Entenmann’s Classic Rich Frosted Donuts. They went from $4.63 in 2021 to $5.21 in 2022. In other words, they got about 13% pricier this year.
Your wallet might be feeling the pinch at the gas pump. The Consumer Price Index says gasoline prices have climbed nearly 43% since April 2021. So, unfortunately, road trips are poised to be pricier this summer.
According to the U.S. Travel Association, about 63% of travelers say gas prices will impact their travel decisions. However, prices aren’t deterring everyone. “Despite higher gas prices, of those planning vacations,” the source says, “35% expect to travel more this summer than last.”
We’ve got more sad news for travelers. Airline fares have soared about 33% in the past year, according to the Consumer Price Index. To put the increase in historical perspective, the source says this is the largest 12-month increase since 1980.
Travel-booking site Hopper says airfare to European cities like Paris will be especially pricey this summer. If you’re flexible about your destination, then the source says you can find good deals. For instance, they recommend New Orleans as an alternative destination for some French culture.
Meats, Poultry, Fish, and Eggs
According to the Consumer Price Index, the broad category of meats, poultry, fish, and eggs has increased by about 14%. Within the category, some products have jumped even more than that. The price of eggs has risen by nearly 23%, for example.
And those of you who love a hearty breakfast of bacon and eggs will be sad to hear that bacon has gotten about 18% more expensive. Other staples like ground beef and frozen chicken parts have also jumped in price. The former by about 15% and the latter by nearly 18%.
If you’ve been thinking about giving your home a refresh with new furniture, then you may want to put that thought on hold. The Consumer Price Index says furniture has gotten 15% more expensive since last April.
In addition to inflation, other factors are contributing to the price hike. For example, the United Nations Conference on Trade and Development cites higher container freight rates as a reason. And Insider says supply chain and labor shortages have also contributed.
Used cars aren’t the only vehicles that have soared in price. According to the Consumer Price Index, new cars are about 14% pricier than last April. While that isn’t as large as the 23% price hike used cars are experiencing, it’s still significant.
As previously mentioned, a global chip shortage has limited the production of new vehicles. So, supply is falling short of demand. Unfortunately, that means buying a new car might involve some sticker shock for now.
The next time you swing by the grocery store’s dairy section, you might notice higher prices. Overall, dairy products increased about 9% between April 2021 and April 2022. But milk has increased by an even higher percentage.
These days, milk will run you nearly 15% more than it did last year. Unfortunately, we can’t count on dairy prices dropping in the near future. The USDA predicts that milk, cheese, yogurt, and other dairy prices will increase by 6% to 7% soon, according to Eat This, Not That.
Similar to cars and furniture, major appliances may be another big-ticket purchase to put off for now. The Consumer Price Index says major appliances have gotten about 12% pricier since last year. Of course, you may not be able to wait — sorry, anyone with a broken fridge or dishwasher.
Designer Appliances says inflation, short supply, and shipping delays are driving prices up. And if you’re hoping to score a deal at holiday sales, then don’t count on much selection. The source says GE only discounted 3% of their models last Labor Day compared to about 30% of their catalog in 2019.
Car and Truck Rental
Renting a car to get around while on vacation can be very convenient. Unfortunately, it’s another aspect of traveling that’s gotten more expensive. According to the Consumer Price Index, car and truck rentals have increased about 10% since last year.
“Demand for rental cars is outpacing the supply of available vehicles,” according to Forbes, “so rental car prices have gone sky high.” So, you may want to look into alternatives like ridesharing services, taxis, and public transportation.
Fruits and Vegetables
The price of fruits and vegetables hasn’t increased as dramatically as some groceries. However, they are more expensive than last year. According to the Consumer Price Index, fruits and vegetables have increased about 8% year-over-year.
Within the broader category, citrus fruits have especially skyrocketed in price. They’ve gotten nearly 19% more expensive. In addition to inflation, shortages are a contributing factor. According to the AP, “Florida is on pace to produce the smallest crop of oranges in more than 75 years.”