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Just one example: School food has increased by threefold!
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Inflation has been a major concern this past year, and it’s not hard to see why. Prices for essential items have been rising steadily, affecting the cost of living for many households.
According to the Bureau of Labor Statistics, inflation from December 2021 to December 2022 was 6.5%. After hitting a high of 9.1% last June, inflation has dropped but is still near a 40-year high. This is largely due to supply chain disruptions, high energy prices, and high demand caused by the pandemic.
The increase in cost of goods
Here is a list of 20 essential items that have increased the most this past year.
Food prices have seen the biggest increases over the past year. In fact, 15 out of the top 20 essentials are food-related products. Food at schools has increased by threefold, the largest price increase of all. A big reason for the dramatic jump is Congress failing to extend school meal waivers. The average price of eggs has increased by nearly 60%, margarine by nearly 44%, lettuce by almost 25%, and canned fruits and vegetables by more than 18%. This is mainly due to supply constraints due to pandemic-related lockdowns and transportation delays. The remaining items are energy, transportation, and household-supply related.
Inflation hasn’t impacted all items
While the cost of most daily essentials such as food and transportation has skyrocketed, there are some items that have actually declined in price. Electronics and many travel-related costs saw price decreases. Smartphones have dropped by close to 25%, and TVs by nearly 15%. Here are a few other notable items that have decreased in price.
All these increases can make day-to-day life quite expensive. Understanding what items are increasing in price can help us budget better as we navigate our financial decisions during this time. Many of these price increases are due to supply chain disruptions. Knowing where our money is going can help us make informed decisions about where best to invest our funds so we can benefit in the long run.
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