Inflation is running rampant through the US economy, and many of the goods and services with the largest price hikes are the ones most necessary to peoples’ everyday lives.
With the Omicron wave of the COVID-19 pandemic all but over, inflation presents the biggest hurdle for the healing economy. The Consumer Price Index — a closely watched measure of broad inflation — surged 7.9% in the year through February, reflecting the fastest price growth since January 1982 and further acceleration from the pace seen just a month earlier.
Pandemic-era inflation has boosted the prices of seemingly everything, varying from used cars to sneakers. Yet some of the fiercest price growth has happened in areas that Americans just can’t avoid. Staples including food, healthcare, and car travel have gotten less and less affordable over the past year, and the latest data shows no signs of a cooldown.
Wherever you look, red-hot inflation is getting harder to avoid. Here are four areas of necessity where price surges are quickly growing more intense.
Driving
From the dealership lot to the gas pump, car ownership is getting tougher and tougher.
High pump prices have come to epitomize the country's inflation problem. Gas prices were up 36% from pre-pandemic levels, according to CPI data. That doesn't yet account for the latest price spikes triggered by Russia's invasion of Ukraine and the subsequent US ban on Russian oil.
Gas prices rose to record highs as President Joe Biden announced the embargo, sparking new fears over even stronger energy inflation. Earlier this month, forecasters predicted gas climbing even higher and potentially hitting an average of $5 per gallon before reversing course.
Getting a new vehicle isn't easy, either. The price of new cars and trucks has climbed more than 14% through the pandemic as automakers struggle with semiconductor shortages and factory closures. Even car insurance is up from pre-crisis levels, leaving car owners with yet another growing cost to stomach.
Housing
Staying home and avoiding spending altogether also offers Americans little reprieve. Rents are up almost 7% from pre-crisis levels, erasing the pandemic-era deals of about a year ago and leaving millions coughing up more each month.
The utilities necessary for homeownership have faced even faster inflation. Water, sewer, and trash-collection services cost about 8% more than they did in early 2020. Electricity prices are up more than 11% from pre-pandemic readings, though that's down slightly from a high recorded in January.
Strains in the energy-commodities market have caused utility-gas prices to leap more than almost all other staples during the coronavirus crisis. The service — key for heating homes and apartments in much of the country — is up about 31% from January 2020 prices.
Even less encouraging, prices ticked up again in February and could be rocked by Russia's invasion of Ukraine.
Food
Rising costs have also hit the grocery run. Prices for food at home have broadly risen 13% since the pandemic began, and the rate of monthly increases has accelerated in 2022.
Must-have items are also up big. Bread prices are 10% higher than they were in January 2020. With the Russia-Ukraine conflict lifting wheat prices, inflation for staples like bread, pasta, and cereal risks getting even hotter.
Milk, meanwhile, has seen prices soar even faster. Costs are up about 14% since before the pandemic, marking another key good affected by historic inflation.
Health and wellness
Beyond eating well, staying healthy amid the coronavirus crisis is hitting wallets hard. Medical care now costs nearly 6% more than it did in January 2020, as do inpatient hospital services.
Pharmaceuticals represent one bright spot. The price of medicinal drugs, which include prescription and over-the-counter varieties, has dipped 0.4% over the past 25 months. In an era when prices are up for nearly all necessities, that deflation is sure to be a boon for millions of Americans, if only a small one.
