Inflation Slows but Continues To Bust Household Budgets

Inflation finally fell on a monthly basis for the first time in almost three years, according to the latest numbers from the Labor Department. December's rate fell to 6.5%, down from 7.1% in November. Overall, inflation decreased 0.1% in December, compared to the 0.1% increase in November. Though there have now been six straight months of decline in the inflation rate, it's still only a slight relief after hitting 40-year highs, with prices through the roof everywhere from the grocery store to the gas pump. The latest numbers break down the price increases in painful detail, and we've combed through them to find some of the most sobering. 

Related: Steps to Take to Outsmart Inflation, According to Experts

Unless you’re vegetarian, many meals are going to cost more, driven by the higher price of meat. Breakfast sausage is up 9%, frankfurters are up 18.2%, and even lunchmeats are up 15.1%. Prefer poultry or seafood? You’ll pay 12.2% and 5%, respectively, more than last year.

Related: Cheap and Easy Ideas for Getting Supper on the Table

Need new wheels? You're probably already prepared for sticker shock. The chip shortage hit car dealers hard, driving up prices and making it all that much harder to negotiate. These days, paying sticker price may even be a good deal, experts say. 

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Sprucing up your home will cost you big time right now. Living room, kitchen, and dining room furniture is up 6.3%, and we especially hope you don't need new rugs — the price of floor coverings is up 12.5%.

Related: Home Decor Products on Amazon That Buyers Adore

Looking at utility bills is never fun, but it has been even less so this year. The cost of electricity is up 14.3%, and that’s the very least of it. Natural gas costs 19.3% more than last year, and fuel oil is a painful 41.5% more.

If you’re seeking relief from the high cost of groceries by eating out, it's understandable, but you’re not getting much of it. Though the overall cost of food at home is up 11.8%, the cost of food away from home is up 8.3% compared with last year. Full-service meals are up 8.2%, while fast food isn't much better: Limited-service meals are up 6.6%. Vending machine snacks cost 14.8% more.

With New Year's resolutions in full swing, many consumers are finding adding more fresh veggies to their diets to cost more than they may have anticipated. Salads in particular are hard on the wallet since an insect-borne virus wiped out crops in California, leading to a 24.9% increase. Potatoes cost 12.9% more than last year, and tomatoes 9.1%. 

Car prices are high right now, so fixing and maintaining what you have is a smart move. Still, it's also much costlier than last year. One particular pain point: fluids including oil and coolant, which are up 19.1% from 2021. The price of tires is up 8.7%. The cost of motor vehicle repair, meanwhile, is up 19.5%.

A breakfast-table staple, milk continues to creep up in price and that's unlikely to change immediately: The Agriculture Department forecast a drop in production through 2022 from ripple effects in the agricultural markets attributable to the Russia-Ukraine conflict, though it expects milk production to increase in 2023.

If sending something across the country has given you sticker shock lately, you're in good company. Fuel and inflation surcharges are common, and even Amazon has started charging third-party sellers a fee that is may trickle down to consumers. The good news is that though those adjustments resulted in a 13.3% increase in costs in December, it's still down from the 16.4% increase in September. 

The snow is falling, and if you're looking for new yard equipment to shovel out your driveway, we’ve got bad news: Getting handy may cost you this year, and higher demand this time of year doesn't do your budget any favors.

High demand, bad weather, and supply-chain issues have all conspired to make your morning pick-me-up much pricier these days. Roasted coffee is up 15.5%, while the instant stuff costs 10.8% more. And no, there’s no relief in grabbing a cup to go — even Starbucks baristas think the chain's prices are insane.

Sorry, ice cream lovers. The rise in milk and other dairy prices has also led to a rise in your Cherry Garcia, gelato, and favorite ice cream novelties by 15%. 

Processed fruits and vegetables have gone up in price more than fresh fruits and vegetables over the last year. Canned fruit and vegetables like mandarin oranges or creamed corn cost 18.4% more, while stocking your freezer with peas and green beans is up 16.4%.

Who can blame us for heaping on the butter or salad dressing in a time of crisis? And the prices of these staples are up big time. Margarine, in particular, is up a whopping 43.8%, while butter will set you back 31.4% more.

After a slight easing of prices in summer, the cost of flights once again soared in the fall. High fuel costs mean airline passengers are unlikely to see major drops in ticket prices anytime soon, though fares did drop slightly compared to November.

Eggs are among the most noted grocery items that have risen dramatically in cost, with already high prices shooting up even more in the past few months, following a severe outbreak of bird flu. It's so bad that some shoppers have started looking for egg alternatives to save a few bucks.

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