How Bad Is the Inflation Story in the U.S. From the Past Year?

Anyone that's been to the grocery store recently probably noticed a difference in the price of...well, just about everything. Costs are rising, and one factor to blame is a skyrocketing inflation rate.

How Much Has Inflation Risen in the Past Year?

In October 2021, the inflation rate was 6.2%. That represents an increase of 4.8 percentage points year-over-year. It's also the highest inflation number — by more than double! — reported in the past decade.

The Consumer Price Index, which helps indicate how inflation might be impacting the prices of things, is up in October too. It was 0.1 in October 2020, and in October 2021, the CPI hit 0.9.

What Goods and Services Are Most Impacted?

Inflation and pricing increases don't hit all items the same, so consumers are likely to experience sticker shock with some items and not others. Gasoline is one of the most impacted items with a year-over-year average increase of 51% in prices. Vehicle rentals, used vehicles and travel expenses such as hotels are next, with various types of foods (and particularly meat) close behind.

Americans Are Worried About Inflation

Close to 90% of Americans are worried about inflation and rising prices. For many, the financial instability associated with the COVID-19 pandemic is still a factor or has only recently subsided, so major hits to monthly budgets may be more difficult to weather. Consumers are planning to take a proactive approach to this new economic challenge, with many cutting back on food outside of the home, passing on technology upgrades and tightening budgets for things like groceries, clothing and repairs.

Economists and other experts divide across the fence on whether a solution to rising inflation is around the bend or not. For most people, it's a game of saving when possible and waiting.