Daniel Wolfram
From baby formula to TVs, unexpected price hikes are crushing Americans’ budgets right before the holidays.
Christopher Rupkey, chief economist at FWDBONDS, recently told Reuters that “inflation isn’t dead; it is very much alive and the cost-of-living crisis rages on.”
That statement rings true as everyday Americans just experienced their grocery bills go up for a third month in a row.
Inflation is causing a lot of goods to rise in price due to President Donald Trump’s tariffs and the war in Iran.
What are some of the items seeing notable increases?
Consumer prices rose 0.4% in October after economists in America had predicted that prices would fall in time for the holidays.
That increase was felt at the grocery store, where everyday goods rose once again. However, it was not just at supermarkets that Americans saw a steep price increase.
Here are some of the items that saw a stark jump in prices:
Baby formula
Baby formula and food prices surged at their steepest rate on record, making it immensely more expensive for parents in America.
Public transportation
Public transit fares jumped 2% in a single month, delivering the sharpest price spike for city buses and subways in six years. Car insurance surged again, too, erasing months of welcome relief for drivers.
Smartphones
The Labor Department has only tracked the cost of buying a smartphone since 2020. But in October, prices for smartphones rose by the most ever and have posted increases in four of the last seven months.
Televisions
The Consumer Price Index, which tracks all these categories, also states that buying a television became much more expensive last month. Televisions actually have a history of getting cheaper, especially when the holidays arrive, but this year it is going to get more expensive if you want to buy a TV for a loved one.
Men’s underwear and women’s dresses
If you were planning on doing some retail therapy this coming holiday, you might want to think twice. According to Sourcing Journal, a news outlet that specializes in retail, men’s underwear experienced a 1.5% increase.
It gets even worse for women as dresses rose to a record high of 3.7%. That is unusual since other women’s apparel was not hit with the same price increase as other goods.
Inflation is here to stay
According to Christopher Waller, an American economist and member of the U.S. Federal Reserve Board of Governors, rising inflation is here to stay and may influence how people react to holiday shopping.
At a finance conference in London, Waller stated: “Let’s just say it. September’s inflation data were bad. There was no silver lining.”
He even hinted at a possible policy change from the Federal Reserve. “A stronger policy move may be needed. In that case, I believe a 50-basis-point hike in the policy rate should be considered at the December meeting.”
