Is Inflation Easing? See How Connecticut Is Affected

CONNECTICUT — A new government report Wednesday shows inflation eased slightly in April, but prices for many necessities continue to cause pain for residents of Connecticut.

Consumer prices in the Northeast region rose 0.6 percent from March to April, which was the smallest month-to-month increase in 2022, according to the U.S. Bureau of Labor Statistics. Consumer prices rose 7.2 percent compared to April 2021.

Nationally, prices rose 0.3 percent from March to April and 8.3 percent compared with April 2021. 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, national 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.

Dairy prices in the Northeast region increased 3.3 percent from March to April and 10.8 percent compared with April 2021, according to the BLS.

In the Northeast, prices on pantry staples such as animal protein products increased 10.8 percent compared with April 2021.

Gas prices, averaged a record $4.40 a gallon nationally. Connecticut averaged $4.37 a gallon and was below the national average, largely thanks to the state suspending its 25-cent gas tax.

Overall, national gas prices have increased 44 percent from a year ago, and data from AAA shows prices have steadily increased so far in May.

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.