WASHINGTON (NEXSTAR) — Friday’s new inflation numbers revealed the cost of many essentials remains high for consumers.
The federal government’s report showed prices rose at an annual rate of 2.7% last month, just a bit higher than the month before.
“Inflation remains persistent and unacceptably high,” said Mark Hamrick, a senior economic analyst at Bankrate.
According to the report, one of the sticking points is healthcare costs, which make up about a fifth of the economy. Hamrick said unexpected trips to the doctor often hurt consumers the most.
“That can really be damaging to their personal finances,” he said.
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Vincent Plymell with the Colorado Division of Insurance said the cost of owning a car, from insurance to repairs, is also driving inflation.
“To do anything, you need a car,” Plymell said. “And so that’s going to impact people.”
Inflation has been a constant headache for the Federal Reserve as it’s tried to slow price increases with higher interest rates.
“The Fed would like to begin reducing interest rates if they thought they had essentially permission from inflation to do so, but they do not,” Hamrick said.
Hamrick said the new numbers mean the Fed will likely not cut interest rates until September at the earliest.
“Betting on that at this point is probably something that would require long odds,” he said.
However, the report wasn’t all bad for consumers. While the price of restaurant meals continues to rise, grocery prices are staying steady.
