Price of goods up across Midwest and nation
Regional prices up 1% over the month in June and nearly 6% from one year ago.
ST. PAUL — The price of used cars, food, gasoline and other goods was up in the Midwest by 1% over the month in June and 5.8% over the year that month, barely beating out the increase in average prices paid by urban consumers across the country.
American cities in June nonetheless observed their largest one-month and over-the-year increases in average prices since 2008, according to the U.S. Bureau of Labor Statistics. The spike in used car and truck prices was particularly sharp, and nationally accounted for one-third of the Consumer Price Index increase.
The index, which measures the change in average prices paid for select goods, is being watched closely as the country continues to recover from the recession caused by the COVID-19 pandemic. The heads of U.S. fiscal and monetary policies have said inflation will subside as the recovery progresses but concerns abound over the possibility of it continuing.
In the Midwest, which the bureau considers to include Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin, price increases in June were driven mostly by those for all goods tracked by the bureau less food and energy.
Increased used vehicle and shelter prices, which were up 11% and 0.6%, respectively, were observed across the region but offset by lower prices for apparel, down 1.6%, and recreation, down 0.6%. Midwest energy prices rose 4.1% over the month in June, meanwhile, a bump influenced mostly by the 3.6% increase in gasoline prices.
Energy price increases in the region also reflect a 5.5% increase in electricity prices over the month in June while a 3.1% increase in the price of natural gas service for the same period.
Over the year in June, gasoline prices were up approximately 45% and natural gas services prices 31%. the average price per gallon for regular gasoline in the Midwest was $3.02 as of this week, according to the U.S. Energy Information Administration, which considers the Midwest to include more states than does the labor statistics bureau.
Food prices in the Midwest rose 0.9% over the month in June and 2.6% over the year. Grocery prices were up 0.7% over the month and 0.4% compared to a year ago, while prices for food away from home increased 1.1% over the month.
Since last year, the price of food away from home in the Midwest has increased 5.5%.