Costs Are Hovering on These 7 Gadgets

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Iakov Filimonov / Shutterstock.com

The inflation canary in the coal mine may be singing its unfortunate song.

According to the latest consumer price index values ​​from the federal government, prices for many products have risen. Overall, the index rose by a seasonally adjusted 0.6% in March, the largest increase in a month since a rise of 0.6% in August 2012.

A handful of items in particular have become particularly expensive. This is followed by products whose prices are rising rapidly.

Houses

Home buyers encounter a real estate agent on a property during the pandemicM_Agency / Shutterstock.com

Fifteen years ago house prices were sky high. We all know what happened next: the epic housing bubble burst right over the rooftops of millions of homeowners.

Now real estate prices are on the up again. S&P CoreLogic Case-Shiller’s latest national house price index rose for eight straight months and prices hit new record highs.

Politico reports that the recent surge – which shows no sign of easing – affects many policymakers and other affected experts. As Lawrence Yun, chief economist for the National Association of Realtors, told the publication:

“I worry the price hike will stifle first-time buyers. It just can’t go on. “

Rental car

Rental carDima Sidelnikov / Shutterstock.com

Now that millions of people have been vaccinated against COVID-19, life is slowly returning to normal. As travel gains momentum again, it is putting pressure on the supply of rental cars – and leading to a staggering rise in rental car prices.

According to the consumer checkbook:

“On March 29 (high season during the spring break), the cheapest price for a rental car in Maui was $ 722 per day for a Toyota Camry, according to Hawaii News Now. In Honolulu that day, vans cost up to $ 500 a day and convertibles rented for $ 1,000 or more, the website reported. “

Prices are also rising in other locations, from Florida to Arizona and Nevada. CNN reports that rental cars in Orlando, for example, recently cost $ 300 per day.

The rising prices are closely linked to the pandemic itself. According to CNN, the rental car industry sold around a third of its combined fleets “just to generate the money it needed to weather the crisis”. That led to the shortage of rental cars – and the high prices – we see today.

gas

Man pumping gas at a gas stationFUN FUN PHOTO / Shutterstock.com

A combination of life returning to normal and warming spring weather created the spark that sparked a surge in gas prices. At the end of March, the national average gas price reached $ 2.87 per gallon, a jump of 25% from the same period last year.

At the time, Patrick DeHaan, head of petroleum analysis at GasBuddy, told USA Today:

“It feels like the Americans have pent up demand for the outside world. This is already happening with the decline in COVID cases in the US. “

Today, the national average price per gallon remains at $ 2.87, which gives hope that the rise in gasoline costs will remain limited. But the spring and summer driving seasons have only just begun, so it would be stupid to bet against the possibility of additional increases.

Food

Shoppers surprised by high prices on a grocery receiptVoyagerix / Shutterstock.com

It is getting more and more expensive to fill your shopping cart at the local grocer.

According to the latest findings from the Federal Office for Labor Statistics, food prices rose by 3.3% from March 2020 to March 2021 and by 0.1% from February 2021 to March 2021. The categories of foods that have increased the most are:

  • Meat, poultry, fish and eggs increased by 5.4% compared to the previous year and by 0.1% compared to the previous month
  • Fruits and vegetables, up 3.8% compared to the previous year and by 1% compared to the previous month

The price hike is due to both consumer stockpiling during the pandemic and the disruption in the supply chain, according to NBC News:

“Before the pandemic started, the national average for a pound of bacon in January 2020 was $ 4.72. By last month, the price had risen to $ 5.11, according to exclusive NielsenIQ supermarket point-of-sale data. Ground beef costs up to $ 5.26 a pound, down from $ 5.02. Bread costs up to $ 2.66 per loaf, starting at $ 2.44. “

According to NBC, the price increases are likely to remain a trend for much of the year.

Wood

Move woodDispute / Shutterstock.com

Suddenly wood is worth gold. According to Fortune, prices rose 193% over the past year.

Once again, you can blame the pandemic of causing a “perfect storm” that led to higher prices, the publication said:

“At the same time as sawmills cut production in the first few months of the crisis, the pandemic sparked a do-it-yourself boom among the stuck-at-home Americans. This mismatch between supply and demand was exacerbated by the low interest rates and the historically cramped housing stock, which resulted in buyers rushing to the new building. “

The signs point to even higher prices, which could cause the cost of homes – and home renovations – to continue to rise.

paper

FabrikaSimf / Shutterstock.com

Just as the price of sawn timber goes up, so does another wood product – paper – becoming expensive.

According to Staples, an office supply store, the price of pulp – the raw material for paper and corrugated boxes – has increased by up to 40% since last summer.

This is due to the growing popularity of e-commerce – and the need for more shipping boxes and related materials – for some of the price hike. In addition, several large U.S. paper mills have either cut production or gone out of business just as the economy is picking up momentum.

According to Staples, manufacturers and distributors have taken on some of the rising costs, but the prices of paper products that use pulp have increased by 7% to 15%, while the prices of packaging materials have increased by 10% to 20%.

New cars

Toyota off-road vehicleVershinin89 / Shutterstock.com

Looking for a bargain on a new car? The wheels could come off this dream.

Two months ago, Cars.com stated that a global shortage of microchips is likely to result in less new car selection and soaring prices. In fact, stocks have decreased while prices have started to rise.

According to Cars.com, the inventory of affordable vehicles – priced less than $ 25,000 – was down 19% from the previous month at the end of March.

So when you are in the market for a new car, you are in a difficult position. If the supply shrinks, prices could continue to rise. According to Cars.com:

“That will sound a lot like what we said two months ago: it is definitely not a good time to buy a new vehicle, but it could get worse before it gets better.”

Disclosure: The information you read here is always objective. However, sometimes we get compensation for clicking links in our stories.

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