SAN ANTONIO – Texas has not been immune to rising inflation costs and shrinking product sizes but how exactly is it affecting us locally?
The Federal Reserve has signaled that as many as six rate hikes are in store for this year in an effort to quell the worst national inflation since the early 1980s.
According to the Bureau of Labor Statistics, the consumer price index rose 9.1% over the last 12 months and the energy index is up 7.5% due to the rising costs of gasoline, which is up 11.2%.
Also on the rise is the cost of food.
“The food index increased 10.4 percent for the 12-months ending June, the largest 12-month increase since the period ending February 1981,” according to a press release from the Bureau of Labor Statistics.
Here are several charts that show how prices are faring in San Antonio and Texas.
Gas prices in Texas and around the country have started to fall in recent weeks after hitting record highs earlier this year.
Comparatively, here’s what gas prices look like across Texas. Bexar County has fared a little better than other parts of the state.
Consumer Price Index
The Consumer Price Index, conducted by the U.S. Bureau of Labor Statistics, measures the average price consumers pay for goods and services.
CPI is based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors’ and dentists’ services, drugs, and the other goods and services that people buy for day-to-day living.
Real Estate Prices
The housing market in San Antonio and the surrounding areas has been hot for the last couple of years thanks, in part, to low interest rates but those rates are starting to climb.
The Federal Reserve made the biggest single benchmark rate hike since 1994 in June.
Here’s where the housing market in San Antonio currently stands in terms of median home list prices:
Tenants have also seen dramatic increases in rent, with some Bexar County ZIP codes seeing a nearly 80% increase in rent prices.
President Biden’s Response
President Joe Biden called rising inflation “unacceptably high” in recent weeks.
He released a statement on July 13 and called inflation “our most pressing economic challenge.”
“Tackling inflation is my top priority – we need to make more progress, more quickly, in getting price increases under control,” he said.
Biden said he is urging Congress to enact legislation that reduces the cost of everyday expenses like prescription drugs and utility bills in addition to lowering health insurance premiums.
He also said he will give the Federal Reserve the “room it needs” to help combat inflation.
His full statement can be read here.