CINCINNATI — A just released government report confirms what your wallet has been telling you for a few months.
Inflation is up sharply in 2021, meaning your buying power is getting smaller.
The headlines in recent days say it all:"Consumer prices jumped 5 percent in May," one read. Another warned, "US inflation is highest in 13 years."
Edith Anderson -- shopping with her family for groceries at the Norwood Kroger -- doesn't need a headline to tell her that.
"Everything is up," she said. "Chicken is more expensive; the beef is more expensive."
Between groceries and $3 gas, we are all paying more this year.
The Bureau of Labor Statistics says, year-to-year:
- Gas prices are up 52%.
- Airline tickets, up 24%
- Home prices, up 15%
- Hotel rooms, up 7%
- Clothing, up 3%
- Used cars, up a whopping 29%
CARFAX spokeswoman Emile Voss told us they have never seen this in the past two decades thatCARFAX has monitored used cars.
"We have a very high level of consumer demand right now, and low supply, and that's leading to record-breaking, historic prices when it comes to used cars," she said.
High grocery prices starting to bite
Excluding gas and car prices, the biggest impact on most of us is in your refrigerator and the groceries we buy every week.
While overall food prices are up a modest 4% year-to-year, some cuts of steak are up 20%.
Allison Homan, owner of Lehr's Prime Cuts in Milford, is scrambling to keep prices down.
"We are doing our best to keep our margins as low as we can," she said. "But at some point, there are certain margins we have to make to stay in business."
No one knows yet if this is long term, or just temporary, as the economy reopens from its year-long pandemic slumber, and consumers spend their stimulus checks, increasing demand.
We'll know by winter if it continues. Until then, don't waste your money.
Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
Follow John on Instagram @johnmataresemoney
Follow John on Twitter (@JohnMatarese)
For more consumer news and money saving advice, go to www.dontwasteyourmoney.com