{"id":2244,"date":"2025-08-12T17:57:37","date_gmt":"2025-08-12T17:57:37","guid":{"rendered":"http:\/\/ft365.org\/index.php\/2025\/08\/12\/latest-inflation-statistics-the-prices-rising-and-falling-most-bankrate\/"},"modified":"2025-08-12T17:57:37","modified_gmt":"2025-08-12T17:57:37","slug":"latest-inflation-statistics-the-prices-rising-and-falling-most-bankrate","status":"publish","type":"post","link":"https:\/\/ft365.org\/index.php\/2025\/08\/12\/latest-inflation-statistics-the-prices-rising-and-falling-most-bankrate\/","title":{"rendered":"Latest Inflation Statistics: The Prices Rising And Falling Most | Bankrate"},"content":{"rendered":"
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Key takeaways<\/span> <\/span> <\/h2>\n
    \n
  • The current annual inflation rate is 2.7%, still above the Fed\u2019s 2% target. <\/li>\n
  • Consumers pay more close attention to cumulative inflation, and prices are 24.3% more expensive today than they were before the coronavirus pandemic recession began in February 2020. <\/li>\n
  • The Federal Reserve cut interest rates a full percentage point across three consecutive meetings in 2024, but officials are taking a more cautious approach in 2025 as price pressures stay sticky and President Donald Trump\u2019s tariff policies lift inflation. <\/li>\n<\/ul><\/div>\n

    Inflation didn\u2019t improve last month, suggesting that businesses may be starting to pass along higher costs from tariffs onto the prices that you see on store shelves.<\/p>\n

    Consumer prices rose 0.2 percent between June and July, according to the Bureau of Labor Statistics (BLS)\u2019 latest monthly <\/span>consumer price index (CPI) repor<\/span>t. Excluding food and energy, a measure of \u201ccore\u201d or \u201cunderlying\u201d inflation rose 0.3 percent, the most since January. Many items currently exposed to tariffs \u2014 from coffee and tomatoes to toys, sporting equipment, household furnishings and apparel \u2014 continued to climb. Used cars and trucks rose the most since September 2022.<\/p>\n

    More price hikes could also still be coming down the pipeline, after higher tariff rates from key U.S. trading partners took effect earlier this month. <\/p>\n

    The majority of economists (41 percent) expect inflation to stay elevated through 2027, primarily driven by higher import taxes, according to Bankrate\u2019s latest Economic Indicator Survey. Meanwhile, Fed officials have said that uncertainty over how tariffs could impact inflation is the main reason rate cuts are on hold.<\/p>\n

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    This could be the calm before the storm. This CPI measures inflation in July, but a slew of tariffs are taking effect this month. It may take a few months before those costs make their way fully to the consumer, but inflation is poised to pick up further in the remainder of 2025.<\/q> \u2014 Greg McBride, CFA, Bankrate chief financial analyst <\/cite> <\/p><\/blockquote><\/div>\n

    A little bit of inflation is good for consumers. The economy keeps growing and businesses continue expanding, hiring workers and bumping up their pay along the way. Too much inflation, however, feels akin to taking a pay cut. High inflation has consequences beyond just affordability, complicating saving for emergencies or investing for retirement.<\/p>\n

    Since the pandemic, consumer prices are 24.3 percent more expensive, a Bankrate analysis of Bureau of Labor Statistics data shows. That price burst means Americans need about $1,243 to buy the same goods and services that cost $1,000 when the coronavirus-induced recession occurred.<\/p>\n

    Looking for the latest information on consumer prices? Here\u2019s a round-up of where inflation is improving \u2014 and where it\u2019s still remaining stubborn.<\/p>\n

    Highlights of the latest statistics on inflation<\/h2>\n

    What is the current inflation rate?<\/h2>\n

    Over the past 12 months, prices have risen 2.7 percent from a year ago, the BLS\u2019 CPI report showed. Excluding food and energy, <\/span>\u201ccore\u201d prices rose 3.1 percent<\/span> annually.<\/p>\n

    Inflation is well below where it peaked in the summer of 2022. Yet, the figures reflect bumpier progress on inflation\u2019s path back to the Fed\u2019s 2 percent target. Inflation was staying stubbornly above the Fed\u2019s goalpost even before President Donald Trump lifted tariffs to the highest since the Great Depression.<\/p>\n

    Prices that are rising the most<\/h3>\n

    Of the nearly 400 items that BLS tracks, roughly 3 out of every 4 items (or 76 percent) increased in price between July 2024 and July 2025. One in 4 (or 25 percent) were cheaper in July than they were a year ago.<\/p>\n

    According to BLS, these are the prices that increased most over the past year:<\/p>\n

    \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    Item<\/th>\nJuly 2024-July 2025 increase<\/th>\n<\/tr>\n<\/thead>\n
    Eggs<\/td>\n16.4%<\/td>\n<\/tr>\n
    Roasted coffee<\/td>\n14.8%<\/td>\n<\/tr>\n
    Instant coffee*<\/td>\n14.3%<\/td>\n<\/tr>\n
    Utility (piped) gas service<\/td>\n13.8%<\/td>\n<\/tr>\n
    College textbooks*<\/td>\n12.9%<\/td>\n<\/tr>\n
    Uncooked beef steaks<\/td>\n12.4%<\/td>\n<\/tr>\n
    Audio equipment<\/td>\n12.4%<\/td>\n<\/tr>\n
    Other condiments<\/td>\n12.1%<\/td>\n<\/tr>\n
    Uncooked ground beef<\/td>\n11.5%<\/td>\n<\/tr>\n
    Beef and veal<\/td>\n11.3%<\/td>\n<\/tr>\n<\/tbody>\n
    *Denotes an item that isn\u2019t seasonally adjusted<\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<\/div>\n

    Month-over-month price changes, however, can give consumers a more real-time look at the prices that have recently been popping. Lower prices in the same year-ago period, for example, can cause an item to look like it\u2019s gaining speed, when it\u2019s slowing in reality.<\/p>\n

    Case in point: Utility piped gas services prices were cheaper in July than they were in June, even though they\u2019re still up 13.8 percent from a year ago. <\/p>\n

    Consumers, however, should take seasonal variations into account. Back-to-school or tax season, for instance, can often contribute to higher prices on items like tax return preparation services or college textbooks. BLS doesn\u2019t seasonally adjust all of its items, and year-over-year inflation rates can better smooth out those variations.<\/p>\n

    According to BLS, these are the prices that increased most over the past month:<\/p>\n

    \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    Item<\/th>\nJune 2025-July 2025 increase<\/th>\n<\/tr>\n<\/thead>\n
    Frozen noncarbonated juices and drinks*<\/td>\n5.3%<\/td>\n<\/tr>\n
    Other motor fuels<\/td>\n4.5%<\/td>\n<\/tr>\n
    Cookies<\/td>\n4.2%<\/td>\n<\/tr>\n
    Airline fares<\/td>\n4%<\/td>\n<\/tr>\n
    Lettuce<\/td>\n4%<\/td>\n<\/tr>\n
    Ham, excluding canned<\/td>\n3.9%<\/td>\n<\/tr>\n
    Tax return preparation and other accounting fees<\/td>\n3.5%<\/td>\n<\/tr>\n
    Infants\u2019 and toddler\u2019s apparel<\/td>\n3.3%<\/td>\n<\/tr>\n
    Tomatoes<\/td>\n3.3%<\/td>\n<\/tr>\n
    Public transportation<\/td>\n3%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    Why is inflation still hot right now? <\/h2>\n

    Consumers might notice just how much more expensive egg prices are from a year ago and wonder why the overall inflation rate is just 2.7 percent. To put it simply, the Bureau of Labor Statistics assigns weights to each individual good or service it tracks, based on how prevalent it\u2019s considered to be in a consumer\u2019s monthly budget.<\/p>\n

    Over the past year:<\/p>\n

      \n
    • Shelter<\/strong> has accounted for roughly half (or 48 percent) of the increase in inflation;<\/li>\n
    • Food <\/strong>has accounted for 14 percent of inflation; and<\/li>\n
    • Car insurance<\/strong> has accounted for 6 percent of inflation.<\/li>\n<\/ul>\n

      Yet, in a sign that tariffs are contributing to the recent increase in inflation, core goods prices (excluding food and energy) accounted for one-fifth (or 20 percent) of overall inflation between June and July.<\/p>\n

      The drivers of inflation have changed dramatically since the initial post-pandemic price burst. When price pressures peaked in June 2022, shelter contributed to just 20 percent of the annual increase in prices. But as consumers emerged from lockdowns with massive pent-up demand at the same time as global supply shortages, goods prices were driving the majority of price pressures, accounting for more than half (58 percent) of inflation between June 2021 and 2022. Energy was also responsible for about a third (32 percent) of inflation.<\/p>\n

      To combat inflation, officials on the Federal Reserve lifted borrowing costs from a rock-bottom level of near-zero percent to a 23-year high of 5.25-5.5 percent. Now, borrowing costs are in a target range of 4.25-4.5 percent.<\/p>\n

      Post-pandemic inflation: What\u2019s risen the most and what\u2019s gotten cheaper<\/h2>\n

      Of the nearly 400 items BLS tracks, just 28 (or roughly 7 percent) are cheaper today than they were pre-pandemic.<\/p>\n

      To be sure, prices are expected to rise in the healthiest of economies \u2014 though only gradually, at a goalpost of around 2 percent a year.<\/p>\n

      According to BLS, these are the top 10 items that have jumped the most in price since the pandemic:<\/p>\n

      \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
      Item<\/th>\nFebruary 2020-July 2025 increase<\/th>\n<\/tr>\n<\/thead>\n
      Eggs<\/td>\n86.5%<\/td>\n<\/tr>\n
      Frozen noncarbonated juices and drinks*<\/td>\n62.7%<\/td>\n<\/tr>\n
      Motor vehicle repair<\/td>\n58.4%<\/td>\n<\/tr>\n
      Motor vehicle insurance<\/td>\n56.6%<\/td>\n<\/tr>\n
      Margarine<\/td>\n56.6%<\/td>\n<\/tr>\n
      Utility (piped) gas service<\/td>\n54%<\/td>\n<\/tr>\n
      Uncooked beef roasts<\/td>\n53.2%<\/td>\n<\/tr>\n
      Uncooked other beef and veal*<\/td>\n52%<\/td>\n<\/tr>\n
      Uncooked beef steaks<\/td>\n48%<\/td>\n<\/tr>\n
      Beef and veal<\/td>\n47.8%<\/td>\n<\/tr>\n<\/tbody>\n
      *Denotes an item that isn\u2019t seasonally adjusted<\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<\/div>\n

      Meanwhile, the items that have dropped in price the most since the pandemic are primarily goods and electronics \u2014 largely thanks to improving supply chains.<\/p>\n

      \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
      Item<\/th>\nFebruary 2020-July 2025 decrease<\/th>\n<\/tr>\n<\/thead>\n
      Smartphones*<\/td>\n-60%<\/td>\n<\/tr>\n
      Telephone hardware, calculators, and other consumer information items<\/td>\n-50.4%<\/td>\n<\/tr>\n
      Televisions<\/td>\n-30.1%<\/td>\n<\/tr>\n
      Information technology commodities<\/td>\n-27.5%<\/td>\n<\/tr>\n
      Education and communication commodities<\/td>\n-23.6%<\/td>\n<\/tr>\n
      Computer software and accessories*<\/td>\n-14.7%<\/td>\n<\/tr>\n
      Health insurance*<\/td>\n-14.6%<\/td>\n<\/tr>\n
      Video and audio products<\/td>\n-11.9%<\/td>\n<\/tr>\n
      Other video equipment<\/td>\n-11.2%<\/td>\n<\/tr>\n
      Dishes and flatware<\/td>\n-11.1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

      Inflation breakdown by product category<\/h2>\n

      Looking for an easy analysis of how inflation is impacting the key items in your budget? Here\u2019s what Bankrate found.<\/p>\n

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      • <\/li>\n
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      • <\/li>\n
      • <\/li>\n
      • <\/li>\n<\/ul>\n

        The different methods of measuring inflation: PCE versus CPI<\/h2>\n

        Fed policymakers look at the full picture of economic data when setting interest rates. But officially, they prefer a different measure to see whether they\u2019re succeeding at controlling inflation: the Department of Commerce\u2019s personal consumption expenditures (PCE) index.<\/p>\n

        Lately, the PCE index has been indicating slower inflation, with overall prices now half a percentage point above the Fed\u2019s target (2.6 percent as of June 2025, versus 2.7 percent in the same month for CPI). Excluding food and energy, \u201ccore\u201d prices in June are up 2.8 percent from a year ago versus 2.9 percent in BLS\u2019 gauge that month.<\/p>\n

        Those variations have always been afoot. Mainly, they\u2019re because of methodology differences. For starters, PCE takes consumers\u2019 substitutions into account (for example, one family\u2019s decision to buy fish over meat for one month because it\u2019s cheaper).<\/p>\n

        But another key difference is to blame lately. Both agencies estimate an item\u2019s relative importance differently, with BLS\u2019 gauge giving the most weight to the category of inflation that\u2019s coincidentally been the hottest: shelter.<\/p>\n

        For Fed officials, the story remains largely the same: Inflation has majorly improved since peaking at a 40-year high back in 2022 but is still stubborn.<\/p>\n

        Takeaways for consumers<\/h2>\n

        Slowing inflation in 2024 gave the Fed room to cut interest rates and consumers a chance to recover some of the purchasing power that they lost. Even so, prices are still higher today than they would\u2019ve been had the pandemic not occurred, and the Fed remains worried that tariffs could reignite inflation.<\/p>\n