As inflation continues to influence global economies, American consumers are experiencing its repercussions more intensely than ever. The cost of daily essentials, from everyday groceries and fuel to housing, have been consistently increasing, straining household finances.
According to the latest data from the U.S. Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI), has increased by 3.7 percent each year as of September 2024. While this is still a celebratory decline from its peak in June 2022, which was at 9.9 percent, the increase in prices in the present is still impacting families. Despite the hope for a return to pre-pandemic prices, the future of economic stability is still undetermined.
Prices on the Rise
At the core of the impact of inflation is the prices of basic necessities, which have remained stubbornly high even as supply chains have recovered. For instance, the cost of food continues to increase, with grocery prices rising by 4.6 percent over the past year. Meat, dairy, and bread are some of the food categories that have been impacted the most, with beef prices being increased as much as 6.5 percent and milk prices increased as much as 3.8 percent.
“In the last few months I’ve noticed an increase in the price of groceries, ” Junior Carlos Serrano said. “Everyday items have become a luxury.”
Similarly to Serrano, sophomore Leslie Simanj shares similar experiences.
“Boba drinks cost like $7,” Simanj said. “I used to get it all the time but now I don’t anymore because it costs too much to be an everyday thing.”
The gas price increase has contined to stain American consumers’ lives. The average price of a gallon of gas in Texas in January 2019 was $1.90, and as of June 2024, the price of gas is now $3.10. In some areas, gas prices have even begun to surpass $4 a gallon. This increase in gas prices forces drivers to adjust their routines and be more conscious about how they get from one place to another.
“My truck costs about $80 every week or week and a half to fill up,” Junior Christopher Montanez said. “It’s just so crazy how much gas prices have increased.”
Housing Concerns
Perhaps one of the most troubling areas of inflation is housing. The median home price in America has reached $420,000 as of September 2024, while just two years ago the average price of a home was $370,000, according to the National Association of Realtors. While the housing market has calmed down since the spike in 2020, high mortgage rates, currently around 7.5 percent for a 30-year fixed loan, are keeping many homeowners from living their lives comfortably.
For renters, the situation is no better. As of September 2024, the median rent for a one-bedroom apartment in the city is around $1,800 per month, a 5 percent increase from last year. The rise in rental prices has increased even more in cities, which then triggers a chain reaction where tenants get evicted and then become homeless, leading to a decrease in the economy and the lives of others.
Looking forward
While inflation has shown signs of stabilizing in recent months, it is unlikely to return to pre-pandemic levels anytime soon. The U.S. economy still continues to suffer years later after the COVID-19 pandemic, global supply chains are still disrupted and the financial landscape remains strained.
As inflation continues, the resilience of American households will continue to be tested. With wages struggling to keep up with prices, and no immediate solution in sight, the ongoing economic challenges show that inflation is real, and that it is not just a number or hoax. Inflation has proven to be an everyday issue that affects millions of people.
