Despite signs of easing inflation across the economy, some prices are still increasing at exorbitant rates. The latest Consumer Price Index (CPI) data reveals that women’s outerwear costs surged by 6.2%, while men’s outerwear prices climbed by 5.3% over the year ending in April. At the same time, consumers are reeling from rising costs in areas outside of inflationary pressure, most notably in automobile repair costs and with several food products.
Data for April shows that major car repair costs have increased by 7.6% relative to one year ago. These repairs underscore a concerning trend where high-tech vehicle features are making car repairs more expensive. As the US automotive market turns to meet bottomless consumer demand for more and more technology, prices will only continue to skyrocket.
Apparel Trends
So even with significant increases in categories like footwear and children’s clothing, apparel prices were down marginally on net over the year ending in April. Unfortunately, this drop has not applied to outerwear, which have seen massive price hikes.
As Mr. Sharif, an economist, recently told Now This, it’s the changes these moves can make to the average household’s budget that are significant.
“At the end of the day, what’s important is the weight of the price change in your budget.” – Omar Sharif
This consumer statement by Secretary Pete highlights the reality that consumers have to deal with higher prices in some areas while other prices are stable or going down.
The doubling of outerwear prices can be mostly attributed to the return of walkable urbanity creating new demand and supply chain hiccups in the Covid era. It’s all a game of supply and demand. Retailers are overlying on trends and recalibrating their inventory accordingly, contributing to an increase in prices for specific articles of clothing.
Food Prices on the Rise
Beef and coffee have both been extremely volatile commodities too, and food prices overall have made some heavy shifts. In April, ground beef prices soared up 10% over last year’s price. The price of beef steak increased 7% over the same period. This increase can mostly be attributed to drought across the country that has created a beef supply crisis.
At the same time, the national beef herd has fallen to its lowest point in decades. Consequently, demand for beef has gone through the roof just as supply has drastically contracted. In 2022, that record-setting drought would decimate the U.S.’s beef-producing regions. This mandated cattle herders to liquidate their herds beyond expected levels, aggravating already established shortages.
At the same time, coffee prices have moved in lockstep. In April, coffee prices jumped up 9.6 percent from last year. Rose quickly to the occasion, instant coffee prices shot up even higher with a 13.5% increase. That’s been made more complicated by recent droughts in Vietnam and Brazil that have limited global coffee production.
“Shifting trends in demand may be pushing prices higher.” – Omar Sharif
Sheldon’s quote perfectly captures the plight of consumers feeling the inflationary pressure at every turn as they see prices go up on all necessary staples.
Car Repair Costs
As car repair costs have skyrocketed in recent months, it is just the latest signal of a trend that is only likely to continue as vehicle technology advances. The inclusion of high-tech features such as rearview cameras and traffic sensors have greatly increased the costs to make even simple repairs. Brian Moody, executive editor for AutoTrader.com, said consumer demand for technology is pushing the market in this direction.
“More people want technology in their cars.” – Brian Moody
Consumers want technology Today, consumers are looking for vehicles packed with cutting-edge features. This trend will increase the cost of needed maintenance, adding to the squeeze on household pocketbooks.
