2.4%
Annual Inflation
Moderate
+0.27%
This Month
2.4%
Prior Month
Rising
Trend
Near normal levels
Impact
Inflation rose slightly this month, reaching a 2.43% annual rate compared to 2.39% in the prior period. Core inflation, which excludes volatile food and energy costs, remains slightly higher at 2.47% year-over-year. While the monthly increase was a modest 0.27%, consumers are still feeling the cumulative impact of rising prices across several essential categories.
Inflation Overview
| Measure |
Annual |
Monthly |
What It Means |
| All Items |
2.4% |
+0.27% |
Overall cost of living |
| Core (ex food & energy) |
2.5% |
+0.22% |
Underlying inflation trend |
Fed's target is 2% annual inflation. Above 3% typically outpaces wage growth.
Housing Costs
Housing Costs
| Item |
Year |
Month |
Note |
| Rent |
+2.7% |
+0.13% |
What renters pay monthly |
| Homeowner Costs |
+3.2% |
+0.22% |
Equivalent rent for owners |
| Electricity |
+4.8% |
-0.71% |
Monthly electric bill |
| Natural Gas |
+10.9% |
+3.09% |
Heating and cooking |
Housing is the largest expense for most households (34% of budget).
Housing expenses continue to climb, with homeowner costs rising 3.2% and rent increasing by 2.7% over the past year. Utility bills show a stark contrast, as natural gas prices surged by 10.9% annually and 3.09% in just the last month. Conversely, electricity costs saw a slight monthly reprieve, dropping by 0.71% despite being up 4.8% year-over-year. These combined factors mean that keeping a roof over one's head and maintaining a home remains a primary driver of inflation.
Food & Groceries
Food Costs
| Item |
vs Last Year |
vs Last Month |
| Groceries (total) |
+2.6% |
+0.44% |
| Restaurants |
+3.9% |
+0.32% |
| Beef |
+15.2% |
+0.76% |
| Chicken |
+2.9% |
+1.26% |
| Milk |
+0.5% |
-0.40% |
| Bread |
+3.0% |
+0.54% |
| Coffee |
+18.4% |
+1.84% |
| Fruits & Veggies |
+2.7% |
+1.37% |
Food accounts for ~13% of household budgets.
Feeding a family has become more expensive, with grocery prices up 2.6% and restaurant meals rising by 3.9% annually. Specific items like beef and coffee have seen dramatic spikes, increasing by 15.2% and 18.4% respectively. Other staples like bread and chicken saw more moderate increases of 3.0% and 2.9%. While fruit and vegetable prices rose 2.7%, milk remained relatively stable with only a 0.5% annual increase.
Transportation
Transportation Costs
| Item |
vs Last Year |
vs Last Month |
| Gasoline At the pump |
-5.6% |
+0.80% |
| Car Insurance Premiums |
+0.2% |
-0.33% |
| Used Cars Prices |
-3.2% |
-0.38% |
| New Vehicles Prices |
+0.5% |
+0.04% |
| Car Repair Maintenance |
+5.6% |
+0.89% |
| Public Transit Fares |
+5.0% |
+0.90% |
| Airline Fares Flights |
+7.0% |
+1.36% |
Transportation is ~17% of household spending.
Transportation costs present a mixed bag for commuters, as gasoline prices fell 5.6% over the last year despite a small monthly uptick. Used car prices also declined by 3.2%, providing some relief for buyers, while new car prices remained nearly flat. However, those relying on public transit or air travel faced higher costs, with fares rising 5.0% and 7.0% respectively. Additionally, car repairs have become significantly more expensive, jumping 5.6% annually and nearly 1% in the last month alone.
Healthcare
Healthcare Costs
| Item |
vs Last Year |
| Medical Services |
+4.1% |
| Hospital Services |
+7.1% |
| Doctor Visits |
+2.0% |
| Prescriptions |
-0.7% |
Healthcare is ~8% of household spending.
Healthcare remains a significant expense, led by a 7.1% surge in hospital services and a 4.1% rise in general medical services. Doctor visits saw a more moderate 2.0% increase over the past year. In a rare bit of good news for patients, prescription drug prices actually decreased by 0.7% annually.
Your Purchasing Power
What Your Money Buys
At 2.4% inflation, $100 from last year only buys $97.63 worth of goods today.
That's $2.37 lost to rising prices.
The steady climb in prices has eroded the value of the dollar, meaning $100 from last year is now worth only $97.63 today. This represents a loss of $2.37 in purchasing power for the average consumer over the last twelve months. As inflation persists, households must spend more just to maintain their previous standard of living.
Inflation Trend (Annual Rate)
What to Expect
Looking ahead, consumers should prepare for continued volatility in energy costs, particularly with natural gas prices trending sharply upward. While the decline in used car prices and prescription drugs offers some relief, the high cost of services like healthcare and dining out is likely to persist. Monitoring these core categories will be essential for families trying to balance their budgets in the coming months.