FINANCE
How much have prices increased this year?
Consumer prices continued to surge in April, rising on average 0.3 percent, after the 1.1 percent increase already recorded this year.
After increasing over one percent this year, the April Consumer Price Index report shows that prices are rising again across the market. In April, the Bureau of Labor Statistics tracked a 0.3 percent increase in average price. From January to February, the CPI increased by 1.7 percent, inching close to the 2 percent threshold.
The Federal Reserve aims to keep price increases under on an annual basis. While there is still plenty of time for prices to soften and reverse course, the sectors that drove the April increase are not likely to see dramatic decreases in the coming months. The BLS reported that the index for shelter and gasoline “contributed over seventy percent of the monthly increase in the index for all items.” The good news from the report is that the “food at home” index (i.e., groceries) fell 0.2 percent. However, when looking at the annual level, prices are still up 1.1 percent compared to where they were in April 2023.
Gas prices typically increase during the summer months as family road trips drive up demand and the figures from April show that this trend may already be underway. Gasoline prices rose 2.8 percent in April, following price increases of 1.7 percent in March and a 3.8 percent bump in February.
What this means for your budget
Housing, which has been cited as a major driver of inflation over the last year, continued to increase, rising 0.4 in April for a year-over-year average increase of 5.5 percent. The situation is primarily difficult for renters, with the prices for leases increasing 5.4 percent over the last twelve months and 1.7 percent already this year. Rents are up 14.6 percent over the last two years, highlighting the tremendous pressure renters are under as prices continue to rise.
This news comes as the BLS also reports that real wages decreased 0.2 percent in April, meaning that the average price increases across markets outpaced any increases in wages recorded. For the Biden administration working overtime to convince voters that the economy is improving, this news poses new challenges for their messaging.