Inflation, inflation everywhere, but no relief in sight. At least it seems that way.
The CPI spiked in March with prices rising the fastest since May 2024. The annual 3.3% rate was almost one point higher than the 2.4% reported for February. Particularly driving the increase was a 10.9% surge in energy costs resulting from the war in Iran, reported CNBC.
This should come as no surprise. Core inflation (CPI minus food and energy prices) in February was already running at 3% year-over-year, making the CPI vulnerable to a surge in gasoline prices. Food prices were already running 3.1% higher year-over-year in February with USDA projecting a 3.6% rise for all of 2026. War impacted transportation, fertilizer, and packaging costs could drive food prices higher in coming months.
A bright spot in March’s numbers came from lower than expected core inflation which registered at 2.6% year-over-year. “There were even pockets of outright price declines, as medical care, personal care, and used cars and trucks all fell during the month,” CNBC reported. This lends credence to those experts who say this spike should not impact long-term inflation unless the war drags on.
Put in broader context, however, the situation is not that great. Creeping inflation, a little every year, mounts up. (Like the PERS COLA, it compounds annually.) From 2021 through 2025 prices increased 24.5%. Had the Federal Reserve’s goal of 2% inflation a year been met, the total would have been 10.4%.
The United Way’s ALICE Essentials Index measures changes over time in the costs of essentials that matter most to ALICE and poverty-level households: housing, child care, food, transportation, health care, and basic technology. Since 2020 those prices increased 20% more rapidly than CPI estimates.
So much for overall inflation numbers. Let’s look at actual prices. Have you visited the gas pump lately? Bought beef? Paid your electricity bill? Renewed your health insurance? Subscribed to a streaming service?
A year ago, the average price of gas at the pump in Mississippi was $2.69. Last week it hit $3.76, a jump of 40%.
Retail beef and veal prices have jumped 14%. Kroger ground beef was $7 a pound last week; sirloin tip steak $11 a pound.
Entergy costs per kilowatt hour (including fuel adjustments) are up 13%. TVA and Mississippi Power increases were modest so far. Increases in natural gas prices will continue to impact rates.
ACA health insurance premiums are up an average of 43% while Medicare increased 9.5%.
Amazon Prime subscriptions increased 14%, Disney 19%, Netflix 16%, and HBO 9%.
These days it’s hard to see how prices can top out.
“To everything there is a season…at time to get and a time to lose” – Ecclesiastes 3:1,6.
Crawford is an author and syndicated columnist from North Jackson.
7 comments:
It doesn't matter now. Pay no attention to the numbers, not now. Like the deficit it only matters when the Democrats are in charge. Everything's gonna be alright unless the Dems get back in there, then we are lost. Keep the faith.
Where was Dumb-Dumb Bill when fuel prices were through the roof the roof under Crap-his-pants Joe?
It appears to me that we have crossed the point of no return with the budget deficit. Our current deficit is costing 88 billion dollars a month to service. That is over one trillion dollars a year in interest.
https://finance.yahoo.com/economy/policy/articles/u-government-spending-88-billion-111740601.html
It, also, doesn't help that the credit rating of the country was recently downgraded.
https://finance.yahoo.com/personal-finance/banking/article/us-credit-rating-221748788.html
I went back and looked, entered Crawford and inflation in the search box . He wrote several on inflation but always blamed the Fed.
Two things can be true: inflation was bad under the last Democrat administration and is bad now as well. Neither party seems to really care about the federal budget deficit or the fact most people have to over extend themselves to get by
I remain fascinated how Mississippi bills itself as a low cost of living state while the handful of communities here that offer middle class jobs seem to not be that cheap relative to the wages paid. Cheaper than NY, DC, LA, Seattle, Boston, but relative to plenty of suburban areas in the south the low cost seems to disappear.
Well that's one thing he has right....of course it's the "Federal Reserve"....whichi is in no way part of our actual federal government
Several economists have published (behind paywalls, check YouTube for free) that the price shock for Trump’s little Zionist Mercenary Expedition is in 2-3 months. It takes most oil tankers 2-3 months to reach their destinations since they only travel 5-14 knots. The ones that left in January are still arriving at their destinations so the shock hasn’t been felt yet. It will happen soon when 1/3 of the world’s helium, 20% of the world fertilizer precursor, 20% of the world’s LNG, and 20% of the crude vanishes from the market for the next 1-5 years. All of this happened because Donald J. Epstein couldn’t say no to Netanyahu.
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