The consumer price index (CPI), a measure of inflation, rose just 0.1% overall in November, totaling 3.1% for the year, but was dragged down by declining gas prices while other metrics continue to climb, putting a strain on American families, according to data from the Bureau of Labor Statistics (BLS).
The price of gasoline declined 6.0% in the month of November after falling 5.0% in October, totaling an 8.9% price drop in the last 12 months, depressing the overall inflation rate substantially, but is still up 36.6% since when President Joe Biden first took office in January 2021, according to the BLS. In contrast, other goods and services Americans rely on have continued to see sustained increases, following sky-high inflation that peaked under Biden at 9.1% year-over-year in June 2022. (RELATED: Here’s How Much Americans’ Home Payments Have Increased Under Biden)
The cost of rent for Americans’ primary residences rose 0.5% for the month of November, totaling 6.9% for the year, according to the BLS. Similarly, the overall price of shelter rose 0.4%, with costs increasing 6.5% year-over-year.
Transportation services have sustained particularly high inflation, with prices rising 10.1% in the past 12 months and increasing 1.1% in November, according to the BLS. The cost of maintenance and repairs for Americans’ vehicles has risen 8.5% year-over-year, while the price of motor vehicle insurance has risen 19.2%.
Housing and transportation were the two largest household expenses for average Americans in 2022, representing 33% and 17% of their overall spending, according to The Motley Fool.
Annual inflation has now outpaced weekly earnings growth for 28 of last 32 months: pic.twitter.com/AluQnrYNIU
— E.J. Antoni, Ph.D. (@RealEJAntoni) December 12, 2023
The price of all food increased a modest 0.2% for the month, totaling 2.9% for the last 12 months, but food away from home, meaning food at restaurants and other dining establishments, rose 0.4% for the month and 5.3% for the year, according to the BLS.
The costs imposed for hospital services continue to stay elevated, rising 6.3% for the year and 0.1% month-to-month, according to the BLS. The health care sector saw the largest increase in jobs in the month of November, adding 77,000 new positions, but has been bolstered by over a trillion dollars in federal funding through health insurance subsidies in fiscal year 2023.
“Today’s report demonstrates continued progress bringing inflation down and lowering costs for American families,” according to a statement from the White House. “Inflation has come down while unemployment has remained below 4% for the longest stretch in 50 years, which means that workers’ wages and household wealth are higher now than they were before the pandemic, adjusted for inflation. Prices have declined for a number of products over the last year from cars and gallons of gas to TVs, toys, and many appliances to eggs and milk.”
Despite the deceleration in overall inflation, total prices are still up 17.2% since Biden took office in January 2021, according to the Federal Reserve Bank of St. Louis. Over that same time frame, real wages have declined by 2.1%.
Following increasing prices and declining real wages, Americans’ average savings have plummeted from highs seen during the COVID-19 pandemic. In April 2020, Americans held an all-time high of almost $6 trillion in savings, which fell to $1 trillion by May and further to $768.9 billion as of October.
The Federal Reserve has sought to bring inflation back down to its 2% target range by hiking its federal funds rate to a range of 5.25% and 5.50%, the highest point in 22 years. Jerome Powell, chair of the Fed, previously noted that he believes the year-over-year inflation rate will not return to 2% until 2025.
The White House did not immediately respond to a request to comment from the Daily Caller News Foundation.
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