Consumers Are Paying Hand Over Fist for These 3 Common Goods and

The U.S. Bureau of Labor Statistics recently released June data for the Consumer Price Index (CPI), which tracks prices on a basket of consumer goods and services. Investors use the CPI as one way to measure inflation.

In June, the CPI increased 9.1% on a year-over-year basis, which is higher than what economists had been expecting and showed that inflation stayed hot in June. Here are three everyday goods and services that consumers have been paying hand over fist for during this high inflationary period.

1. Gasoline

No item drove the CPI higher in June than record gas prices. The cost of all types of gasoline rose 11.2% on a year-over-year basis after only rising 4.1% year over year in May. Gas prices have been stoked by high demand as the pandemic has eased and Russia’s ongoing invasion of Ukraine, which has led to various bans and embargos on Russian oil by many European countries and the U.S. The average cost of a gallon of regular gas surpassed $5 a month ago.

Image source: Getty Images.

While gas is expensive, it’s also one reason that investors may be able to breathe a little regarding the 9.1% CPI increase, according to the White House, which issued a statement on the CPI report when it came out, saying:

While today’s headline inflation reading is unacceptably high, it is also out of date. Energy alone comprised nearly half of the monthly increase in inflation. Today’s data does not reflect the full impact of nearly 30 days of decreases in gas prices that have reduced the price at the pump by about $0.40 since mid-June.

Still, the direction of gasoline is hard to predict moving forward. A recession would take it down, but Russia also could reduce production, which could drive prices way higher, so we are not necessarily out of the woods just yet.

2. Rent 

Rental prices have shot up in recent months (take it from someone who’s currently in the market). The rent index, according to the CPI, jumped 0.8% in June from May, which represents the largest monthly rent increase seen since 1986.

The culprit is higher interest rates, which have sent mortgage rates soaring — at one point to roughly 6%. That has pushed a lot of would-be homebuyers out of the market and thrown them back into the rental market, driving up demand. According to Redfin, the national median monthly asking rent price rose above $2,000 for the first time in May, which is up 15% year over year.

3. Groceries

If you’ve been grocery shopping, you’ve likely noticed that food is ridiculously expensive right now. The CPI showed that food at home rose 1% on a year-over-year basis in June, more so than food away from home such as going out to eat, a trend that has now played out for the last six months. Over the last year, the food-at-home index has risen more than 12%, the largest annual increase since 1979.

Butter, sugar, and sweets saw sharp increases. There were also increases in cereals and bakery products, flour, dairy, fruits and vegetables, and…