When 2022 rolled around, it didn’t take long for people to realize that everything was getting more expensive. As time passed, getting to work and putting food on the table became more than necessities, taking up much larger portions of the average worker’s paycheck.
However, some staples of the American economy got pricey faster than the rate of inflation, which stood at a 40-year high of 9.1%. For people hovering near the poverty line, food ate away at already stagnating wages, sinking them further and further beyond that line.
If you’re wondering what other items might have jumped the inflation bubble, we’ve compiled a short list of the most significant goods and services that are now considerably more expensive.
1. Sugar
I have a sweet tooth that won’t quit. Making treats I love and enjoying my morning coffee are activities that I won’t sacrifice, and they’ve pinched my wallet hard since inflation started raising prices.
One of those staples is sugar (across all granulated options), which rose nearly 40% as of October 2023. The skyrocketing prices have caused a ripple effect across the snack and treat industry, causing prices to rise.
2. New and Used Cars
Most people know that when prices go up, they rarely, if ever, come back down to pre-elevation settings. This scenario is true for both new and used cars. The used car market has an average price of $33,582 and an annual APR (annual percentage rate) of 11.9%.
The new car market is steady at $48,389, with an annual APR of 6.73% and an average monthly payment of $734.
3. School Lunches
While the price increases to school lunches vary by district and state, some are seeing a 20% jump in overall costs to school lunch programs. This increase means more children qualify for free and reduced lunches, which many public schools offer to impoverished children.
It also means that the supply chain issues that inflation dragged along made it difficult for school lunch programs to obtain the ingredients needed to fulfill their nutritional programs. Joan Shorter, the food and nutrition director at Prince George’s County Public Schools in Maryland, said, “We’re talking $8,000 more per day for fruit, and that’s just one meal…”
4. Gas
For 22 years, gas prices stayed at $1.35 and didn’t crack $2 until 2004. However, when summer came around in 2022, when inflation started to eat away at everyone’s paycheck, gas prices topped $5 in some regions. Now, they’re holding steady at $3.50 in 2024.
When pandemic restrictions finally lifted, many companies instituted a “return to the office” mandate that required their staff to resume long commutes to work. The “return to office” mentality further stressed fuel costs as workers had to pay serious money again to return to work. It may be years before we see fuel prices fall again.
5. Vehicle Insurance
Insurance rates have dramatically increased since inflation started, causing prices to tick up. Vehicle insurance especially pinches the wallet because you must include it in your vehicle protection, especially if you commute to work.
Paying for car insurance might be a pain, primarily since prices increased almost 21% between February 2023 and February 2024. This uptick is the highest yearly increase in 48 years and sets the tone for a rising trend in transportation costs.
6. Water
Not everyone pays for their water, but if you live close to a city, you can bet you’ll add a hefty water bill to your monthly expenses. Despite once being one of the least expensive utilities, it is now a serious cause for concern.
By 2022, consumers’ average monthly water and sewage bill was $111 in 2021, up 4.3% since 2020. As clean groundwater becomes more scarce in some parts of the world, those water bills will only climb because you’ll have to pay for transportation to bring drinking water to your home.
7. Housing
With 30-year mortgage rates hitting 8% for the first time since 2000, housing prices jumped exponentially. While the median price for a home in the US isn’t as high as its 2022 peak of $428,700, it’s still hovering at $420,800.
Renters aren’t fairing any better. Rent.com lists the average monthly rent amount at $2,150, a $3 rise since June 2024. Since 1985, rent prices have exceeded income increases by 325%.
8. Streaming Services
Bundling the top streaming services now costs more than the average monthly cable bill. At an average of $87/month in 2023, platforms like Disney, Hulu, and Netflix are raking in millions with a price increase that averages a 25% increase as subscriptions remain strong.
Regarding television and our favorite shows and movies, we’re willing to pay more for instant access.
9. Childcare
Babysitters, nannies, daycare centers, and family care facilities all saw considerable spikes in average cost as inflation settled in for the long haul. Daycare averaged a 13% increase from 2022 to 2023, while babysitters were up 7% from $179 to $192 in the same year. Nannies were also up by 4% to an average weekly pay of $766.
Childcare has always been expensive, usually requiring one parent to work just to afford someone else to watch their children. Plenty of women decided it wasn’t worth it. However, the work-from-home transition during the pandemic may have changed how daycare and parenting coexist.
10. Electricity
We may not like depending on electricity to meet our daily needs, but the fact remains that we do. For consumers, this meant paying 13% more in 2022 than in 2021.
This price surge also translates to higher heating costs, which experts expected to rise 10% in 2023.
11. Healthcare (including prescription medications)
Healthcare hasn’t been affordable for a long time, but there are, on occasion, some insurance policies that offer plenty of benefits for a reasonable price. However, we’re spending more on healthcare now than we ever have, a staggering $13,493 per person.
This expense includes the average spend on prescription drugs, which is $1,126. As of September 2023, the price of over-the-counter drugs had also risen 7.4%, and dental care was up 5.1%. It’s no secret that people choose between healthcare and necessities like food and shelter.
12. Mobile Plans
If it’s been a while since you last upgraded your mobile phone or changed your cellphone plan, listen up. Mobile plans have risen an astonishing 34% in the last ten years, with an average 4.7% increase year-over-year since 2013.
Instead of that lovely, manageable single-line payment, you can expect to pay an average of $114 monthly. Spread that out over the entire year, and you’re looking at $1,371 on the low end.
13. Music Subscriptions
We all love music. We may have our favorite streamers like Pandora or Spotify, but music draws us all together. Getting your favorite downloads is simple if you’re willing to pay for your preferred streaming platform.
On average, music platforms like Spotify and Pandora were up 7% from September 2022 to September 2023, with inflation accounting for the increase in cost.
14. Baby Food and Formula
Easily one of the most expensive parts of having a baby, formula and food costs are always pricey. Inflation only made that moreso.
Now, parents can expect to pay 8.8% more since last fall, with the average price of formula running between $550 and $3600 for the first year. Baby food, on its own, can run up to $200 a month per child, depending on the brand and amount you need to purchase.
15. College Education
In the last 40 years, the price of a college education has steadily risen 180%, costing the average family $38,436 annually. In 1980, the price was a mere $10,231 a year for four years of education, totaling $153,744 versus $40,924.
For many families, taking on that incredible debt is becoming less and less alluring. The degrees that used to draw students in throngs no longer seem worth the extreme financial burden.
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