As the latest U.S. inflation data shows a 9.1 percent increase in the cost of living for the 12 months ending in June, Americans are beginning to get serious about their spending. While inflation surges across the board, some categories of products are seeing faster rates of price increases than others.
Here are the products most affected by inflation — and how they impact the larger landscape of prices.
Here's a quick state of inflation recap.
Experts predicted that inflation would increase by just a few basis points to 8.8 percent (from the previous month’s 8.6 percent), but the jump of 9.1 percent surpassed this.
Inflation doesn’t hit all Americans equally. Lower-income households and Black and Hispanic Americans are bearing the brunt due to spending a larger portion of earnings on inflation-prone necessities, according to the Associated Press.
Global chief economist at the Kroll Institute, Megan Greene, told reporters, “The Fed’s rate hikes are doing what they are supposed to do, which is kill off demand.” Greene added, “The trick is if they kill off too much and we get a recession.”
Certain products have seen larger price hikes as the U.S. experiences the highest inflation in four decades.
Here are the product categories that have seen extreme inflation over the past year (that are well above the national rate, despite the fact it’s already the highest it has been in four decades):
Fuel and gasoline: Number two fuel oil is up 98.6 percent per gallon. It’s worth noting number 2 fuel oil is tax-free as a way to keep prices low at all times. In this case, that isn't what’s happening. Diesel is up 76 percent and regular gas is up 60.4 percent.
Eggs and chicken: Grade A large eggs are 64.9 percent more expensive per dozen due to inflation. Skinless chicken breasts, fresh whole chickens, and bone-in chicken legs are up 36.2, 23.9, and 16.8 percent, respectively.
Flour, pasta, and rice: All-purpose flour is 39.9 percent more expensive. Types of pasta, like spaghetti and macaroni, are up 22.6 percent while long-grain white rice is up 18.8 percent.
Butter and milk: Butter sticks are up 22.3 percent per pound. Low fat, reduced fat, and skim milk are 22.2 percent more expensive. Whole milk is 16.8 percent pricier.
Oranges, potatoes, and lemons: Navel oranges have seen an 18.2 percent price increase. White potatoes are up 15.9 percent and lemons have experienced a 12.2 percent increase.
Ground coffee and soda cans: A pound of ground coffee is now 25.8 percent more expensive. A 12-pack of soda cans is up 23.5 percent.
What about core prices?
Core prices, or prices of items minus volatile energy and food products, are also up. Core prices alone are up 5.9 percent in a year, proving that the hyperinflationary environment is seeping into all aspects of the economy. This puts us at a greater risk of a rough landing that may result in a recession. Experts from Vanguard predict we have a 50 percent chance of entering a recession in the next 18 months.