SAN FRANCISCO – With the number of coronavirus cases declining and 1.8 million US residents getting vaccinated each day. More and more Americans plan this coming Memorial Day weekend to return to old bliss, such as evening friends, commutes, and afternoons at ball games.
They will also find something new and less satisfying: higher prices.
Overall, US consumer prices In April, it was up about 3.1% compared to February 2020, the month before the economic downturn. Data released on Friday showed inflation measured 3.6 percent last month. And core inflation excluding gas and volatile food prices rose 3.1percent, the largest annual increase since 1992.
And that might just be the beginning. A survey from the University of Michigan on Friday showed consumers’ one-year inflation expectations jumped to 4.6 percent in May from 3.4 percent in April.
Prices are expected to continue rising in the summer. This was driven by bottlenecks that squeezed the supply of both materials and labor. and rising consumer demand
Reuters gathered “Memorial Day Weekend Price Index” to capture the rising prices of imaginary shopping carts and the easing of the first long weekend of summer, which this year is May 29-31.
Index, which mainly consists of leisure expenses. Accommodation and medical expenses are not included. among other worldly items It rose about 4.3%, faster than the overall consumer price index.
While Americans go out and buy things that many people haven’t done in a long time. They will find that the price change is no different. Here’s an example:
Go shopping: The Memorial Day sale is a lasting feature of the summer’s three-day open-end weekend. There are special offers on large items such as washing machines and mattresses. but with increasing demand shortage of parts and low inventory Consequently, durable goods prices rose 7.5% from February 2020.
Weekend getaways: Despite the recent surge, including a 10% increase from March to April. But airfares are still 18% below pre-epidemic levels, meaning airfares today are similar to what they might have done 15 years ago. But the price index that tracks hotels, motels and Airbnbs is still about 5% lower than before the epidemic. Renting a car is another story: The index tracks car and truck rental prices up 45%.
Dinner, beer: Overall, the price increase was consistent with the average of all goods and services since the outbreak began. Prices for full-service meals and snacks have increased by about 3% since February 2020, the same as alcohol prices. outdoor drinks
Backyard Cooking: Tossing food on the grill for friends or family? minced meat prices increased by 7%; Hot dogs are up 11%, vegetables are up just 2% since February 2020, and prices for fresh or frozen pies for dessert are down 1%.
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Movies, Theme Parks, Ball Games: Overall, admission to movies, theaters, theme parks, or concerts. A mere 2% increase from the pre-epidemic level. This is because some movie theaters are closed permanently and other large venues are reopening or starting to allow more people to enter. It is unclear how the supply and demand balance might change. Meanwhile, as of April, the price index for sporting events fell 1% from pre-epidemic levels.
Trimming and tattooing: The price index for haircuts and other personal services such as manicures and pedicures. An increase of about 6% since before the epidemic It is reported that the bookings for tattoo parlors have increased. But the Bureau of Labor Statistics doesn’t track the price of body art.
(Reporting by Ann Saphir and Lucia Mutikani; Editing by Dan Burns and Nick Zieminski)