As the year closes out, inflation is refusing to go down without a fight.
The Labor Department released its last inflation report in 2024 on Wednesday, showing that prices rose 2.7% for the year ending in November. (December’s report comes out mid-January.)
While the the numbers were in line with expectations, this marks the second month in a row where prices ticked up on a yearly basis, meaning inflation is slowly heading in the opposite direction from the Federal Reserve’s preferred rate of 2%.
Americans have gotten some relief this year, with prices falling for fuel, used vehicles and tech gadgets. But there are several major expenses related to housing, health care and auto maintenance, where prices spiked year-over-year and, in some cases, show no signs of slowing down.
Where prices rose the most in 2024
Here are the individual items that saw the biggest annual price increases:
- Eggs: 37.5%
- Frozen drinks and juices: 17.2%
- Condiments: 16.1%
- Auto insurance: 12.7%
- CDs, DVDs and similar media: 12.1%
- Pet services: 12.1%
- College texts books: 11.6%
- School supplies: 10.6%
- Postage: 10.6%
- Nursing home care: 9.9%
Zooming out, expenses for some broad categories of goods and services have also far outpaced the overall inflation rate, including:
Housing
Housing costs are one of the most important factors of the overall inflation rate. Rent prices jumped 4.8% this year. Other related expenses jumped, too. The cost of lawn care services increased 6.3%, and utility bills grew 5.7%.
Health care
By several measures, the cost of health care crept higher in 2024.
Health insurance costs, for instance, rose 5.9%, while hospital care and general medical care increased 4.3% and 3.7% respectively.
Vehicle upkeep
Both new and used cars have thankfully dropped in price lately after meteoric gains in recent years. The costs associated with keeping your car on the road, however, aren’t falling in tandem.
Auto insurance prices are up 12.7%, and the cost of repairs has jumped 7.8%. Routine maintenance services are also 4.4% more expensive.
Pet care
It costs a lot more these days to keep your pet happy and healthy.
General pet services like grooming and boarding spiked 12.1% in price, while vet care costs rose 7%. The price of pet supplies slightly outpaced inflation, too, at 2.8%.
Breakfast items
Overall, grocery prices are leveling out, with prices rising slightly slower than overall inflation, at 2.4%. Some common breakfast items unfortunately didn’t get the memo.
Most notably, eggs are 37.5% more expensive this year. Breakfast drinks like instant coffee and juices are also pricier, respectively rising 4.6% and 3.1%.
What about interest rates?
Next week, Fed officials are gathering in Washington, D.C. for their final meeting in 2024. Even though inflation is stickier than expected, experts are still predicting the Fed will lower interest rates by 0.25 percentage points.
“We think the Fed will deliver a cut at next week’s December meeting, with market expectations giving them ‘permission’ to do so,” Elyse Ausenbaugh, head of investment strategy at J.P. Morgan Wealth Management, said in emailed commentary.
Though with inflation not fully in the rearview mirror, Ausenbaugh said J.P. Morgan expects the Fed to hold rates steady at the January meeting.
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