How Much Did Inflation Affect You?

The consumer price index climbed 7.0 percent in 2021, the largest annual increase since 1981, the Bureau of Labor Statistics reports. But for many items, the increase was much lower. Here is the percent change in consumer prices for selected categories of goods and services...

Percent change in the consumer price index, December 2020 to December 2021 

49.6%: gasoline

37.3%: used cars and trucks

24.1%: meats, poultry, fish, and eggs

11.8%: new vehicles

  9.0%: tobacco and smoking products

  7.4%: household furnishings

  7.0%: all items

  6.5%: food at home

  6.0%: food away from home

  5.0%: fruits and vegetables

  4.1%: shelter

  3.3%: recreation

  2.3%: alcoholic beverages

  2.2%: medical care

  2.0%: education

  1.4%: airline fares

  0.0%: prescription drugs

So, if you're a vegetarian who drives an electric car you've had for years, inflation is not so bad. If you're a meat-eater who drives a used Ram pickup truck purchased in 2021, ouch.

Source: Bureau of Labor Statistics, Consumer Price Index: 2021 in Review

Bracing for the Covid-19 Recession

We know a recession is coming. It's likely to be severe. But the severity will vary by geographic area, according to a Brookings analysis. "In a huge nation made up of diverse places and varied local economies, a look at the geography of highly exposed industries makes clear that the economic toll of any coming recession will hit different regions in disparate, uneven ways," say Brookings researchers Mark Muro, Robert Maxim, and Jacob Whiton.

The researchers examined employment by metro area in the five industries most vulnerable to a coronavirus disruption—mining, transportation, employment services, travel arrangements, and leisure and hospitality. Overall, 24 million people work in those industries—16.5 percent of all workers. But in some metropolitan areas the share is much higher, and that's where the coming downturn could hit hardest.

Among the 100 largest metro areas, Las Vegas is most vulnerable, with 34 percent of its jobs in the five most affected industries. Also among the top five are Orlando, New Orleans, Honolulu, and Oklahoma City. Tech-oriented university towns are likely to be least affected by the Covid-19 Recession, say the researchers. Among the 100 largest metro areas, the five least exposed to the recession's effects are Provo, Utah; Durham-Chapel Hill, North Carolina; Hartford, Connecticut; Albany, New York; and San Jose, California.

"While essentially all of America will likely be affected by Covid-19's economic effects, those effects will be distinct and varied from place-to-place," conclude the researchers.

The Brookings researchers published this report on March 17, one week ago. That's ancient history for an exponentially expanding virus. So, one of the concluding comments in the report may be the most pertinent: "In the event the pandemic tips the economy into a significant nationwide recession, very few places or industries will emerge unscathed. And if that happens, other large sectors—including construction, manufacturing, retail,  education, and even the motion picture industry will be affected regardless of geography."

Source: Brookings, The Places a Covid-19 Recession Will Likely Hit Hardest