Sending higher prices too: The ongoing pandemic has complicated supply chains, limiting supply, even as demand for goods skyrockets.
Here’s what you need to know about price trends.
Thinking of buying a new sofa? Maybe new bedding? Be prepared to pay more than usual.
Prices for furnishings and home operations, which include categories such as household services and furniture and bedding, rose 1.3% last month. At first, the change does not seem significant, but it is the largest monthly increase since January 1976.
New cars also became more expensive, increasing 1.6% in May. This is the largest month-on-month increase since October 2009.
The shift to working from home and the loss of jobs last year have pushed auto sales down. In response, many dealerships have closed. While the demand for cars has returned, the supply has not returned. Auto factories around the world have been forced to shut down or limit production following a recent shortage of computer chips. Now car dealerships have fewer cars on their lots. Strong demand and limited supply continue to drive up prices.
Americans have been stuck at home for over a year now. But with Covid’s relaxed restrictions and vaccination rates rising, travel is coming back and people are eager to go.
Once you get to your destination, things don’t go so bad. Intra-urban transport prices fell 0.4% last month.
Fortunately, however, pickle prices have fallen 2.1%, soft drink prices have fallen 0.5%, and overall fruit and veg prices have not changed, so you can au less stock up on side dishes and drinks for your end-of-year celebrations.
Notoriously volatile, food prices continue to rise in general. The cost of food rose 0.4% in May. This is the same increase as in April.
While prices are going up, there is good news, especially if you need a doctor.
The Medical Care Index, which includes items such as drugs, medical equipment and health services, rose 0.9% in the past 12 months. Yes, it’s higher than the same point last year, but it’s the smallest increase since March 1941.