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The Street

Samanda Dorger

Inflation Is Making These Items More Expensive; Here's How Much Prices Have Risen

Inflation Bankrate RENT Bananas (Organization) Insurance

Imagine how you would feel if your employer cut your pay by $6,800 a year.

You would probably immediately look for ways to cut back expenses, and you might find the choices difficult—maybe you can live without cable TV or eating at restaurants, but for some people, the choice may come down to eliminating essentials like health insurance, a car or even food.

In a way, you have had a pay cut—it’s called inflation, and as of June 10, 2022 you’ve taken an 8.6% hit to your dollars, or spending power. The U.S. Bureau of Labor Statistics reported that in May, the Consumer Price Index (a widely watched inflation indicator) rose 8.6% from the previous year, the largest 12-month increase since the period ending December 1981. Prices for food at home rose 11.9% over the year. Food, shelter and gas were the biggest contributors to inflation.

For a U.S. family earning the national median family income of $79,900, (2021) 8.6% is like an increase of $6,871 in expenses annually.

What does that look like? For the average household dedicating 33.1% of its budget to housing costs, $6,871 is more than three months rent. For a thrifty family spending $901.30 a month on food, $6,871 is 7.5 months of groceries. It’s an entire year of health insurance for a single 40-year old on a silver plan.

For those already stretched to their budget limit, staying afloat means taking on debt, which is also getting more expensive as interest rates rise.

A March Bankrate poll found that 93% of Americans have noticed higher prices this year, and price increases are most noticeable in food and energy. Bankrate parsed the June 2022 data from the Bureau of Labor Statistics, to come up how much prices have gone up for many of the common items we buy.

Read: This Is Why Your Bottle of Wine Just Got More Expensive

The good news? Wireless phone services have gone down an average of 0.70%, but that’s about it, and it’s hardly enough to offset the other price increases. Most foods have gone up, day care has gone up, rent, electricity, clothes and cable TV and other services cost a lot more.

This might be a good time to cut back on snacking: Potato chips now average about $5.62 for 16 ounces, cookies are $4.51 a pound and ice cream is $5.35 for a half gallon.

Here’s how much prices have gone up for 44 common items, including food, clothes, insurance and utilities, as of May 2022, according to Bankrate.