8 Expenses That Have Spiked Over 10% in the Past Year
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Inflation was not only higher than analysts expected in March — it has also driven up the cost of expenses like car insurance and care for older adults more than 10% in the past year.
Overall, consumer prices increased 0.4% from February to March, bringing the annual inflation rate for the U.S. to 3.5%, according to the latest consumer price index (CPI) report.
Contributing to the rise is the shelter index, which has surged 5.7% in the past year and accounts for more than 60% of overall annual inflation. Gasoline prices have also been a recent driver of inflation: The average gallon of gas now costs $3.62, which is up more than 22 cents from a month ago due to rising oil prices, according to AAA.
The Federal Reserve's long-run target for inflation is 2%. Wednesday's hotter-than-anticipated March CPI reading could mean that officials will need to keep interest rates high for a longer amount of time in order to reach that goal.
“In one word, the report was discouraging for the Fed and the prospects of a June cut,” Bank of America economists wrote in a note. “Inflation is proving sticky.”
Of all the items tracked by the CPI, two relatively small indexes had the largest gains. The price of video discs and other media is up 30.1% since this time last year, leading all other items after a 14.7% spike from February to March. (Fortunately, you probably aren’t buying too many video discs in 2024.)
The second-fastest-growing category is frozen noncarbonated juices and drinks, which is up 27.5% since March 2023.
Some of the other indexes experiencing double-digit price growth are bigger CPI categories more relevant to everyday Americans. The 22.2% year-over-year jump in car insurance prices is certainly the most notable: Premiums are skyrocketing as insurance companies raise rates deal with an increase in costly claims after car prices soared during the pandemic.
Here are the eight expenses for which prices are up at least 10% since March 2023, based on the latest CPI data:
- Video discs and other media: 30.1% increase
- Frozen noncarbonated juices and drinks: 27.5%
- Motor vehicle insurance: 22.2%
- Repair of household items: 18%
- Care of invalids and elderly at home: 14.2%
- Motor vehicle repair: 11.6%
- Uncooked beef roasts: 11.2%
- Domestic services: 10.9%
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