Grocery, Airfare Inflation Reached Historic Highs in April; Gas Prices Eased
Americans paid less for gasoline but more for groceries and air travel last month as the broader pace of inflation eased slightly but remained historically high.
A fall in energy costs led the way toward the smaller overall gain, with gasoline prices dropping a seasonally-adjusted 6.1% in April, following a steep advance in crude-oil prices in March after Russia’s invasion of Ukraine. Groceries rose by 1% over March and were up 10.8% over the last 12 months, the largest 12-month increase since November 1980, the Labor Department said.
Broadly, many price categories continued to show monthly increases, and overall prices rose 0.3% over the prior month, though the pace of increases eased to 8.3% in April from 8.5% in March, on an annual basis.
Below are a few of the categories that saw significant price increases, and ones where prices have retreated from recent highs.
Gas Prices
Despite the monthly decline, gasoline prices were up 43.6% over the last 12 months. Russia’s invasion of Ukraine drove gasoline prices up 18.3% in March from a month earlier, the largest monthly increase since 2009. And the pain at the pump hasn’t been resolved: gasoline prices hit a record high Tuesday, not adjusting for seasonality, eclipsing the previous high from March 11. Crude-oil prices have continued to rise as the European Union considers a ban on Russian oil, a move that would continue to shrink the global supply of oil as demand remains strong.
Overall energy costs, also including electricity and natural gas, dropped 2.7% on the month, in April, and rose 30.3% over the year.
Groceries
The April increase in grocery prices was somewhat slower than the 1.5% gain in March. Still, it marked the fourth straight month grocery prices increased by at least 1%. Dairy prices, led by milk, shot up in April by 2.5%, while fruits and vegetables saw modest price declines.
Costs for cereals and bakery products rose by more than 1% last month and are up more than 10% over the year as limited grain and fertilizer exports from Ukraine and Russia ripple through the global food supply.
Travel and Shelter
Americans are traveling again, and high demand combined with continued supply constraints on labor and jet fuel are sharply increasing prices. Airline fares increased by 18.6% in April, the largest single month increase since records began in 1963. They’re up by 33% over the past year. Lodging at hotels and motels rose 2% in April after advancing 3.7% in March.
Staying home has gotten more expensive too, but at a significantly slower rate. Shelter costs rose 0.5% over the month at 5.1% from a year earlier.
New and Used Vehicles
Prices for new and used cars are moving in opposite directions as the shortages on used car lots ease somewhat, but supply-chain headaches and limited availability of crucial components like semiconductors hurt production of new vehicles, forcing auto makers to warn of elevated prices and limited availability at least through the rest of 2022.
Prices for new cars rose by 1.1% in April, accelerating from a 0.2% rise in March. But prices for used cars and trucks fell by 0.4% in April, a third straight month of declines after a long period of steady increases throughout the pandemic.
From a year earlier, used car prices were up 22.7% and new vehicles cost 13.2% more.
Write to Gabriel T. Rubin at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Americans paid less for gasoline but more for groceries and air travel last month as the broader pace of inflation eased slightly but remained historically high.
A fall in energy costs led the way toward the smaller overall gain, with gasoline prices dropping a seasonally-adjusted 6.1% in April, following a steep advance in crude-oil prices in March after Russia’s invasion of Ukraine. Groceries rose by 1% over March and were up 10.8% over the last 12 months, the largest 12-month increase since November 1980, the Labor Department said.
Broadly, many price categories continued to show monthly increases, and overall prices rose 0.3% over the prior month, though the pace of increases eased to 8.3% in April from 8.5% in March, on an annual basis.
Below are a few of the categories that saw significant price increases, and ones where prices have retreated from recent highs.
Gas Prices
Despite the monthly decline, gasoline prices were up 43.6% over the last 12 months. Russia’s invasion of Ukraine drove gasoline prices up 18.3% in March from a month earlier, the largest monthly increase since 2009. And the pain at the pump hasn’t been resolved: gasoline prices hit a record high Tuesday, not adjusting for seasonality, eclipsing the previous high from March 11. Crude-oil prices have continued to rise as the European Union considers a ban on Russian oil, a move that would continue to shrink the global supply of oil as demand remains strong.
Overall energy costs, also including electricity and natural gas, dropped 2.7% on the month, in April, and rose 30.3% over the year.
Groceries
The April increase in grocery prices was somewhat slower than the 1.5% gain in March. Still, it marked the fourth straight month grocery prices increased by at least 1%. Dairy prices, led by milk, shot up in April by 2.5%, while fruits and vegetables saw modest price declines.
Costs for cereals and bakery products rose by more than 1% last month and are up more than 10% over the year as limited grain and fertilizer exports from Ukraine and Russia ripple through the global food supply.
Travel and Shelter
Americans are traveling again, and high demand combined with continued supply constraints on labor and jet fuel are sharply increasing prices. Airline fares increased by 18.6% in April, the largest single month increase since records began in 1963. They’re up by 33% over the past year. Lodging at hotels and motels rose 2% in April after advancing 3.7% in March.
Staying home has gotten more expensive too, but at a significantly slower rate. Shelter costs rose 0.5% over the month at 5.1% from a year earlier.
New and Used Vehicles
Prices for new and used cars are moving in opposite directions as the shortages on used car lots ease somewhat, but supply-chain headaches and limited availability of crucial components like semiconductors hurt production of new vehicles, forcing auto makers to warn of elevated prices and limited availability at least through the rest of 2022.
Prices for new cars rose by 1.1% in April, accelerating from a 0.2% rise in March. But prices for used cars and trucks fell by 0.4% in April, a third straight month of declines after a long period of steady increases throughout the pandemic.
From a year earlier, used car prices were up 22.7% and new vehicles cost 13.2% more.
Write to Gabriel T. Rubin at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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