The new inflation report put some perk in the Dream Hoarders’ stock market, but no relief in sight for the rest of us. The Department of Labor’s overall inflation measure was 8.5% percent higher in July from a year before—a rapid rate, though slower than June’s 9.1% annual pace—which was the fastest since November 1981. That ‘slowing’ of the annual pace…cheer or jeer?
U.S. consumers paid more to eat in July, facing higher prices for peanut butter, meats, eggs and other foods than the month before.
Shoppers also saw prices climb last month for a range of other goods and services, including medical care, new vehicles and household furnishings, as well as falling prices for used cars and clothing.
Prices for gasoline, air travel and hotels also eased in July, good news for Americans hoping to squeeze in another vacation this summer.
Here is a sample of some of the notable seasonally adjusted price changes in the department’s categories of goods and services in July from June.
Energy
Gasoline prices dropped 7.7% in July, after shooting up for months due to high crude prices and a shortage of refinery capacity. The average cost of a gallon of regular unleaded gasoline in the U.S. peaked above $5 in June and has fallen since then to around $4 a gallon, according to OPIS, an energy-data and analytics provider owned by Dow Jones & Co., publisher of The Wall Street Journal.
Natural-gas prices fell 3.6% from the prior month, while electricity prices rose 1.6%.
Food
Food prices overall rose 1.1% in July, the seventh consecutive monthly increase of 0.9% or more. They climbed across all of the major categories, including meats, poultry, fish and eggs, dairy products, fruits and vegetables, nonalcoholic beverages, food eaten at home and food eaten away from home.
Breakfast eaters saw prices rise not just for eggs, but also for breakfast sausage, bacon, toast, cereals and bakery products. Coffee prices rose 3.5%.
Peanut butter sandwich fans faced higher prices to assemble the lunchbox staple. Prices for peanut butter and breads other than white bread climbed 3.5%. White bread prices climbed 2%.
Hot dog grillers got a break with the 6.1% fall in the prices of frankfurters.
Transportation
Airline fares declined 7.8% in July, as the industry struggled with staffing shortages and travelers faced frequent delays. Car and truck rental prices fell 9.5%. Prices rose 0.6% for new vehicles, while declining 0.4% for used cars and trucks.
Alcoholic Beverages
Drinkers saw prices rise for all alcoholic beverages consumed at home, including whiskey (up 0.6%), wine (up 0.1%), beer, ale and other malt beverages (up 0.5%), and distilled spirits excluding whiskey but including tequila (up 0.8%). I don’t know about you, but I’m self-medicating more, not less, these days.
All told, those with fixed incomes, workers, small businesses with no bargaining power— are still getting poorer.