Inflation is doing what economists expect, rising 2.9% in December while slowing slightly for the first time in months when volatile categories like food and gas are excluded.
Still, within those topline numbers is another reality: Many of the everyday goods and services Americans spend their money on keep getting more expensive.
Think gas, healthcare, and rent. Food prices moderated, with a few specific exceptions.
Here’s what the latest CPI report means for your household:
Groceries increased 0.3% in December, after rising 0.5% in November. But even with that slowdown, major food groups are showing price hikes.
The big (old) story: eggs, which are up a whopping 36.8% from a year ago.
The monthly jump was steep too. A dozen large Grade A eggs cost $4.15 on average in December, compared to $3.65 in November and far higher than the $2.52 at the start of 2024.
Other food price changes of note:
Beef was up 0.5% monthly, a deceleration from November’s 3.1% rate. But beef and veal prices are still 5.1% higher than a year ago.
Frozen, noncarbonated juices and drinks — think OJ canisters in the freezer aisle — are 12.5% higher than a year ago, thanks to bad weather and citrus diseases that have clobbered orange production worldwide.
The cost of eating out held steady from November to December, up just 0.3%, but was still 3.6% higher than a year ago.
Home healthcare for elderly or disabled family members was nearly 10% higher than a year ago, and nursing home care was up over 5%. Hospital and related services crept up 4%, the BLS found.
The cost of health insurance was up 4.8% since December 2023. Meanwhile, the index for prescription drugs remained flat in December but was still higher than a year ago.
While price growth for both new and used cars has slowed since last year, other vehicle expenses remain hot.
Auto insurance, which has been soaring for more than a year, grew just 0.4% month over month and is still over 11% higher than a year ago.
Three consecutive years of underwriting losses mean insurers have paid out more in claims and expenses than they took in through the premiums we pay — leading to the steep hikes felt today.
Car maintenance and repair costs increased 6.2% year over year. Meanwhile, parking fees and tolls were 4.6% higher than in December 2023.
But there was good news at the gas pump.
The gasoline index jumped 4.4% in December. As of Jan. 15, the national average for gasoline was $3.09 per gallon, according to AAA data.
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The new inflation reading remains above the Federal Reserve’s target of 2%. But the index coming in as anticipated is likely to keep the Federal Reserve on pause from cutting interest rates during its next policy meeting this month.
Read more: A cautious Fed on track for one last 2024 cut followed by a ‘slowing down’ in 2025
