Rising Food, Housing Prices Fuel Inflation

August 10, 2022

The prices consumers pay for goods and services rose 8.5 percent year-over-year in July as inflation pressures “remained strong.” Prices for food and housing remained especially elevated, hammering families’ finances. Real wages, which subtract inflation from wage increases, have now decreased for 16 consecutive months.

Bloomberg: The food-at-home category soared to 13.1 % over the last year, the largest increase since the period ending March 1979, according to the US Labor Department on Wednesday. . .

Consumers have been fighting inflation by trading down to value brands, IRI said. They’ve also been shopping deals. . .

Overall, food prices are up 14% year over year through July, according to the company. The research firm compiles its insights from point-of-sale data.

Eggs cost 38 percent more than last year, butter is up 26 percent and coffee costs 20 percent more. Additionally, prices for housing — which makes up ⅓ of the Consumer Price Index — continued to rise at the same pace as the month before. 

Bottom Line: Inflation remained “close to a four-decade high in July” — and economists predict that the Democrats’ ironically named, “Inflation Reduction Act” will add more fuel to the inflation fire.