What do eggs, tickets to sporting events, and car insurance all have in common? Their prices have risen by more than 10% over the last year.
In June, the consumer price index rose 3% year-over-year, per the Bureau of Labor Statistics — it hasn't been below 3% since March 2021. The expense categories with the biggest year-over-year price declines included smartphones, used cars, and apples — each fell by over 10%.
But not all prices have eased over the past year. Eight expenses in the CPI index have seen price growth of over 10%: uncooked beef, admission to sporting events, motor vehicle insurance, frozen noncarbonated juices and drinks, video discs and other media, eggs, care of invalids and older people at home, and photographic equipment and supplies.
While these expenses collectively account for less than 5% of the CPI's total weighting, they've frustrated some Americans. And to the extent they've propped up inflation, they've also made a Federal Reserve interest rate cut less likely.
Since May 2022, when inflation reached 8.6% — the highest level since the 1980s — prices have gradually fallen. Slowing wage growth, the Federal Reserve's interest-rate hikes, and normalizing supply chains have all contributed to this. If inflation continues to cool, experts say the Federal Reserve will likely begin cutting the federal funds rate. This could lead to lower interest rates for credit card debt, car loans, and mortgages.
Here's why those eight expenses have risen considerably over the past year. While price growth could ease in the coming months for some of these categories, it could remain elevated for others.
The expenses are listed in descending order from largest to smallest increase in the rate of price growth between June 2023 and June 2024.