The Briefing
- The inflation rate in the U.S. has seen its fastest annual increase in over 30 years
- Fuel, transportation, and meat products are seeing some of the steepest increases
Prices have been going up in a number of segments of the economy in recent months, and the public is taking notice. One indicator of this is that search interest for the term “inflation” is higher than at any point in the past decade.
Recent data from the Bureau of Labor Statistics highlights rising costs across the board, and shows that specific sectors are experiencing rapid price increases this year.
Where is Inflation Hitting the Hardest?
Since 1996, the Federal Reserve has oriented its monetary policy around maintaining 2% inflation annually. For the most part, U.S. inflation over the past couple of decades has typically hovered within a percentage point or two of that target.
Right now, most price categories are exceeding that, some quite dramatically. Here’s how various categories of consumer spending have fared over the past 12 months:
| CPI Category | One-Year Change |
|---|---|
| Energy commodities | 49.5% |
| Used cars and trucks | 26.4% |
| Energy services | 11.2% |
| New vehicles | 9.8% |
| Tobacco and smoking products | 8.5% |
| Food at home | 5.4% |
| Food away from home | 5.3% |
| Transportation services | 4.5% |
| Apparel | 4.3% |
| Shelter | 3.5% |
| Alcoholic beverages | 2.2% |
| Medical care services | 1.7% |
| Medical care commodities | -0.4% |
Of these top-level categories, fuel and transportation have clearly been the hardest hit.
Drilling further into the data reveals more nuanced stories as well. Below, we zoom in on five (Read more...)