No economic story has been as constant in recent years as the dramatic increase in inflation from 2021 to early 2023 and its lingering effects on consumers, families, businesses and governments.
However, a deeper look at the figures made available by the Bureau of Labor Statistics (BLS) sheds light on where the pressure on prices has continued, and where it has declined.
Inflation measures how much more expensive any particular set of goods and/or services has become over a defined period (i.e., a month, year, or decade). A high rate of inflation means that prices are rapidly increasing, while a low rate of inflation signals the opposite.
The Bureau of Labor Statistics measures inflation using the Consumer Price Index (CPI), and headlines regarding inflation typically refer to either the “all items index” – which includes all items measured by the CPI – or the “all items less food and energy index” – which removes food and energy items due to their being the most volatile.
Inflation in the US has cooled significantly since the aftermath of the pandemic, and in recent months ranged from 2.5% to 2.7%. Generally, economists agree that inflation at an annual rate of approximately 2% is ideal for a healthy economy.
However, inflation in the Northeast clocked in at 3.5% from November 2023 to November 2024. No other region had inflation over 3%. This is a reversal from much of the post-pandemic period when the Northeast tended to have lower inflation than the country as a whole.
Still, even as we discuss falling rates of inflation, it’s important to take note of how these changes may or may not be felt by the average consumer. Many of these distinctions can be driven by the inflation rate of individual items.
For instance, the year-over-year inflation rate for meat, poultry, and fish, was just 1.5% in November 2024. However, according to BLS, beef and veal prices had increased by 5% over that span compared to just 1% for chicken.
On the other hand, many of the items that drove inflation in the post-pandemic period have experienced price decreases, even if it doesn’t feel that way because prices remain elevated from several years ago. For example, year-over-year inflation for gasoline was down 8.1%, and used cars and trucks were down 3.4%.
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