Is Inflation Easing? See How Maryland Is Affected

MARYLAND — A new government report Wednesday shows inflation eased slightly in April, but prices for many necessities continue to increase, causing pain for Maryland residents.

Prices rose 8.3 percent compared to April 2021, and 0.3 percent compared to March, according to the U.S. Bureau of Labor Statistics report. The April-over-March increase in the Consumer Price Index was the smallest monthly increase in seven months.

Maryland prices were up 1.6 percent over the past 2 months, up 9.1 percent from a year ago, the report said.

The April change was largely due to a 1.1 percent increase in all categories except food and energy index. The energy index also rose since February, up 7.4 percent.

Over the last 12 months, the Consumer Price Index increased 9.1 percent, mostly due to a 7.1-percent increase in expenses other than food and energy as the impact of significantly higher prices for new and used motor vehicles since April 2021 continued.

The energy index and the food index also rose over the year. The 30.5 percent increase for the energy index continued the trend of higher 12-month increases since March 2021 and matched the November 2021 increase, the largest of that period, officials said.

The biggest increases were for shelter, food, airfares and new cars. Nationally, food prices were up 0.9 percent, including groceries, which rose a full percentage point.

Of particular note, dairy prices increased for the 17th consecutive month, up 2.5 percent from March, the largest increase for the dairy index since July 2007. Over the past year as a whole, grocery prices have increased 10.8 percent, the largest year-over-year increase since 1980.

Food prices rose 1.3 percent for March and April. The food at home index was up 2.3 percent, due in large part to higher prices for fruits and vegetables, up 6 percent and nonalcoholic beverages and beverage materials, up 4.5 percent.

Dairy and related products in the region rose by 2.3 percent in April compared to March and by 8.5 percent compared to April 2021.

The increase in the food at home index was led by a 20.7 percent rise in prices for meats, poultry, fish, and eggs, the report said.

Prices for used cars and trucks in Maryland were unchanged compared to February.

Gas prices, which are still averaging $4.40 a gallon nationally and $4.41 in Maryland, increased 11.6 percent from February to April.

Prices for electricity increased 2.6 percent, while prices for utility (piped) gas service declined 2.3 percent for the same period. Energy prices jumped 30.5 percent over the year, largely due to higher prices for gasoline, according to the report.

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One month of data isn’t enough to show if inflation is headed downward, economists, note. And there are signs in the report that inflation is becoming embedded in the U.S. economy, The Associated Press reported.

When the volatile food and energy prices — driven higher by persistent COVID-19 pandemic supply chain issues and, more recently, Russia’s war in Ukraine — are taken out of the mix, the so-called core inflation on goods and services increased 0.6 percent from March to April, twice the 0.3 percent rise from February to March.

Core inflation rises more slowly, the AP explained, but can take longer to decline. For example, rent is rising at a historically fast pace, up 0.6 percent from March to April. Hotel costs are up, too, 1.7 percent from March to April, following a 3.3 percent increase from February to March.

Persistent inflation is a political problem for President Joe Biden, and a financial problem for many Americans, especially those on fixed incomes who are making tough choices at the grocery store and gas pump.

Patty Blackmon, who lives in Las Vegas, told the AP that $5.89-a-gallon gas prompted her to reduce the number of trips she makes to the grocery store and her grandchildren’s sporting events. She hasn’t decided if she’ll make a road trip to see relatives in Arkansas this summer, hasn’t visited her hair stylist in 18 months, and is buying more canned soup and salad ingredients at the grocery store.

“A steak is almost out of the question,” she told The AP.

The Associated Press contributed to this report.