St. Louis is among the cities with highest jump in inflation
by: Nexstar Media Wire, Jeremy Tanner
Posted: Nov 10, 2021 / 04:46 PM CST / Updated: Nov 10, 2021 / 04:46 PM CST
SAN FRANCISCO, CALIFORNIA – OCTOBER 04: A customer shops for meat at a Safeway store on October 04, 2021 in San Francisco, California. The price for meat at the grocery stores has surged over the past year with beef jumping 12.2%, pork 9.8% and chicken up 7.2% since last year. (Photo by Justin Sullivan/Getty Images)
(NEXSTAR) – The inflation rate in the U.S. is the highest it’s been since the 1990s and the rising prices are affecting staples such as food, rent, autos and home heating oil, according to Bureau of Labor Statistics (BLS) numbers released Wednesday.
The U.S. as a whole has seen a 6.2% jump in consumer prices since last year, but inflation is also affecting major metro areas differently, with some seeing a greater spike in prices than others.
Inflation pushing small businesses to the brink
Leading the country is the Atlanta-Sandy Springs-Roswell metro area in Georgia, with a 7.9% increase over October of last year, followed by the greater St. Louis area (7.5%) and Phoenix-Mesa-Scottsdale in Arizona (7.1%).
Bureau of Labor Statistics data shows consumer price index changes broken down by major metro area in the U.S. BLS officials warn that, while the long term trends are similar to the national index, short term trends are unprotected to more sampling and measurement error which could consequence in greater short term volatility.
The additional strain on Americans’ wallets comes as the country, nevertheless in the grips of the COVID-19 pandemic, prepares to go into the Thanksgiving and holiday shopping season.
Before Thanksgiving hosts went shopping last year, the food index was 5.4% less, according to BLS numbers. Grocery staples such as meat, poultry, fish and eggs saw the largest jump (11.9%), with beef the highest of all (20.1%).
What’s causing inflation?
With the extensive availability of the COVID-19 vaccine, need for a number of products, such as fuel, has jumped as the supply chain continues to cripple supply levels.
Experts also point to hiring challenges, which have forced employers to raise wages and offset that higher pay with a price increase on manufactured goods.
Thanksgiving prices up as inflation, supply chain costs rise
Americans are now spending 15% more on goods as the supply change sags under shipping bottlenecks that excursion prices skyward.
The jump in inflation is not confined to the U.S., however, with 19 European countries using the Euro experiencing annual rates over 4% and energy prices soaring 23% — the largest increase in more than a decade.
In the U.S., the pain of inflation is felt more by lower-earning households who use a large proportion of their incomes on food, rent and gas.
Signs of economic strength
Despite the rising inflation numbers, experts say the economy is showing a consistent recovery from the pandemic recession.
Consumers, on average, have plenty of money to use, making 2021 different from the 1970s when Americans simultaneously suffered high unemployment and high inflation.
“We’re nevertheless looking at an economy in a strong position,” said Sarah House, a senior economist at Wells Fargo. “The consumer is nevertheless going out and spending, which is why we are seeing the price gains we’re seeing.”
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Republicans in Congress are blaming the same $1.9 trillion rescue package passed in March — a package designed to help people struggling during the pandemic — with the current inflation numbers. The combination of stimulus checks and greater unemployment subsidies drove need out of sync with supply in the U.S., they argue.
On Wednesday, Biden visited the port of Baltimore and pledged to help rectify some of the supply chain problems behind the rising cost of goods.
“Inflation hurts Americans’ pocketbooks, and reversing this trend is a top priority for me,” Biden said.
How long inflation will continue to rise in the U.S. is not certain, but last week Fed Chair Jerome Powell — who has long referred to the occurrence as “transitory” — acknowledged that higher prices could last well into next summer.
The Associated Press contributed to this report.
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