All right this hits your pocketbook the Latest consumer price index report shows Inflation is running hotter than Expected the labor department says Prices rose 3 and a half% year-over-year In March they're up nearly half a Percent from the month before in a Statement President Biden notes Inflation is still much lower than its Peak but he says there's more work to do To lower costs TBS news senior business And Tech correspondent Joe link Kent Joins us now from our Los Angeles Bureau To speak about all of this and what I Appreciate jooling is that you join us With a smile while you report on Information which reflects that people Are frowning as they realize that these Increasing prices are really making Stuff uh expensive but what's driving The price increases we're all Failing yeah more than half of what We're seeing in this hotter than Expected inflation is driven by gas Prices and rent that is the harsh Reality so even though inflation remains Below 4% It is Well above the 2% Target That the Federal Reserve is looking to When it comes to deciding if and when They're going to cut rates later this Year at the last fed meeting it was Telegraphed that we'd get three rate Cuts right and now when you have hotter Than expected inflation you can expect a
Reevaluation at the FED in Washington as To what they're going to do now Inflation across the board has been Really stubborn and sticky that is the Fundamental problem in fact if you look At some of the most persistent high cost Items they're monthly expenses we're Talking about auto insurance over the Last year if you've been feeling it You're not wrong it's been up 22.2% overall from just a year ago so Even though the Biden Administration is Saying look we're off the peaks of 9% Inflation in 2022 prices are still going Up and they're still going up by 3 and 1.2% and that really hurts people in Their pocketbook AR all and it's Important that you point to things like Car insurance these are musthaves you Can't choose not to Be covered I know that you've been Looking at how it impacts what folks can Buy in the grocery store now having to Make more difficult decisions about what They can and cannot purchase how is this Changing what people can afford yeah so We wanted to not just look at the last Year but the last five years and so we Got some great data from neelen IQ Looking at what groceries cost pre Pandemic in the year leading up to 2020 And then now post pandemic right and so If you take that 5year Horizon you take A look at a $100 GR gr budget say you're
Spending that on your you're targeting And you're trying to spend that on your Family every week well 5 years ago a $100 grocery budget would buy you about 30 some items I can go into the details Of what those are if you want but you Fast forward 5 years to spend $100 you'd Then have to subtract 33% about 10 items Out of your grocery bag and we're Talking about taking out big items like Milk chicken cereal bread and four or Six other items to hit and stick with Your $100 budget so even though food Inflation isn't as bad as it was in 2022 Perhaps 2023 it's still incredibly Expensive and prices are going up just At a slower rate but it still means that Prices are going up and so we don't Expect prices ever to come back down so To speak unless there's a major economic Event but when you're talking about Groceries and as you point out car Insurance 90% of Americans own a car so You have to have car insurance to Mention repairs are up elder care if You're caring for an elderly person is Up way over 10% over the last year these Are major costs that are taking huge Amounts of money out of your paycheck And even though wage growth does outpace Inflation by some it is still a very Significant crunch that you're feeling When you're paying for your monthly Expenses arol yeah I no so well put so
Viewers at home can know that while it's Painful misery loves company we're all Feeling it jool linken thanks for Breaking it down for us appreciate you Thanks ARL
