Key Prices Up More Than Triple Official Inflation Rate
The official price checkers in Washington recently reported that the Consumer Price index rose just 1.5 percent in 2010. That's less than half the long-term historical inflation rate. But as your wallet may have already been telling you, lurking within that deceptively low overall inflation rate are plenty of items that became a lot more expensive in 2010.
A gallon of gas shot up about eight times the official average rate, some food prices rose more than triple the 1.5 percent average inflation rate, and school tuition increased at more than double that pace. So no, it's not your imagination. Some key consumer prices are indeed rising, and rising a lot more than the "headline" inflation number. Here are some thoughts on how to hold down your spending in the categories with the biggest price jumps in 2010:
- Gas (2010 price increase: 13.8 percent)
Public transportation might be a money saver, but according to the Bureau of Labor statistics, even that cost rose 4.9 percent in 2010, or more than triple the overall 1.5 percent rate of inflation. Still, that's a lot lower than the 13.8 percent rise in gas. If you're in the market for a new car in 2011, MoneyWatch's Jerry Edgerton recently reported on how to land better car mileage without settling for a wimpy engine. And if you're keeping the wheels you have, be sure to check out Farnoosh Torabi's checklist of ways to save on gas costs in 2011. Top of her list: make it a part of your routine to fuel up at Costco and BJ's Warehouse to pocket savings of up to 10 percent or so.
- Household Goods (2010 price increase: 6.7 percent)
- Water and Sewer and Garbage Collection (2010 price increase: 5.7 percent)
- Meat, Poultry, and Fish (2010 price increase: 5.5 percent)
- School Tuition (2010 price increase: 4.0 percent)
Photo courtesy Flickr user dvortygirl
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