Rising Inflation Hurting MD Consumers The Most For These Products

MARYLAND — From steak and eggs to gasoline and cars, Maryland consumers are paying significantly more for these items as inflation continues to take a bite out of your earnings.

Anyone who’s been to a Maryland grocery store recently knows the pinch of a 7.9 percent jump in inflation, the sharpest consumer price index spike since 1982.

The price of food increased on pace with inflation, costing Americans 7.9 percent more last month than in February 2021, according to the Bureau of Labor Statistics’ most recent report on consumer price index increases. The report is a cautionary tale, showing a steady increase in inflation since last fall.

Proteins like meat, fish, poultry and eggs are up 13 percent. Fruits, vegetables, cereals and bakery items are up almost 8 percent. Dairy and related products cost about 5 percent more.

But within those categories are steeper increases. Milk, for example, costs about 11 percent more. A beef roast costs about 19 percent more and a steak 17 percent more. Citrus fruits cost about 16 percent more. Roasted coffee is up 11 percent. Eggs increased 8 percent.

Much of the focus on inflation has been on rising fuel costs. The average cost Maryland residents paid for a gallon of gas decreased 3 cents to $3.78 per gallon Monday, according to AAA.

Maryland drivers felt immediate relief at the gas pump after Gov. Larry Hogan on Friday signed an emergency suspension of the state's gas tax. Maryland's gas tax of 36 cents per gallon is paused for 30 days for both regular and diesel fuel.

Related: Maryland Gas Tax Halted For 30 Days Under Emergency Bill

Maryland Inflation Rates

Prices in Maryland, as measured by the Consumer Price Index, rose 1.3 percent for the 2 months ending in February 2022, the U.S. Bureau of Labor Statistics reported. However, the February change was smaller than those posted in October and December 2021 (2.3 and 1.8 percent, respectively).

The all items less food and energy index for Maryland accounted for more than half of the overall increase, up 0.9 percent, and it also moderated over the last 2 bi-monthly periods. The energy index and the food index also rose since December, up 5.5 and 2.2 percent, respectively.

Over the last 12 months, the rate of inflation increased 9.3 percent, the largest over-the-year increase since September 1981.

The state's food index rose from December to February, up 2.2 percent, reflecting an increase for food at home. The two-month cost increase of 3.4 percent for food at home was the largest since May 2020.

There were widespread increases in meats, poultry, fish, and eggs (3.8 percent); and nonalcoholic beverages and beverage materials (4.1 percent). Food costs away from home dropped 0.1 percent in February, the first decline since February 2021.

Over the year, Maryland food prices increased 10.7 percent as prices rose for both food at home (10.5 percent), and food away from home (9.9 percent). The increase in the food at home index was led by an 18.1 percent rise in prices for meats, poultry, fish, and eggs.

Maryland's energy index, which includes prices for household and transportation fuels, increased 5.5 percent since December, led by higher prices for gasoline (5.4 percent). Prices for electricity rose over the past 2 months, up 5.6 percent, while utility (piped) gas service prices increased 2.0 percent.

Over the year, the cost of energy in the state increased 28.9 percent largely due to higher prices for gasoline (37.9 percent). While this was the 13th consecutive month of gasoline price increases, it was still well below the peak of 57.9 percent in May 2021, federal officials said. Prices paid for electricity jumped 18.4 percent, the largest increase for electricity since May 2008. Utility (piped) gas service was up 21.2 percent, the largest increase in nearly five years.

New cars and trucks cost about 12 percent more. But if you’re planning to buy a used vehicle? Prepare to pay about 41 percent more. Tires cost about 15 percent more. Oil costs about 13 percent more.

The cost of women’s clothing 6 percent overall, but dresses alone cost almost 14 percent more. The cost to clothe babies and toddlers increased 12 percent, and it costs more than 10 percent more to buy shoes for the kids.

The cost of a vacation also is increasing. Airline fares are up about 12 percent. Leasing a car? That’ll cost 24 percent more. Hotels cost about 29 percent more. If you’re planning to attend a major sporting event, expect to pay about 21 percent more.

Recently, the skyrocketing cost of gas made the convenience of having an Uber courier deliver dinner from your favorite Maryland restaurant and ordering a ride from Lyft more expensive.

It’ll cost 45 to 55 cents more for an Uber trip, and between 35 and 45 cents more for an Uber Eats delivery, depending on gas prices in each state. The platform’s profits remain “elevated compared to historical trends,” the company said in a news release, but Uber’s temporary fuel surcharge will help out drivers who are feeling the pinch of higher prices at the pumps.

The DoorDash delivery service is giving drivers 10 percent cash back on gas purchases, even when they’re not working. And those who take the most deliveries will get bonuses for up to $15 for 225 miles.

Grubhub drivers’ mileage increased nationwide on March 9, Bloomberg reported, though it did not say by how much. Regional differences in gas prices were taken into account.

Lyft also has added a temporary fuel surcharge, too, telling NPR in a statement the money will go directly to drivers. It didn’t say how much more riders will pay, though.

Inflation was 8 percent, a 40-year-high, in the 12-month period ending Feb. 28, according to the Labor Department. With prices increasing across the economy, Uber said it will continue to listen to consumers and its drivers to determine if more changes are needed.

Airline Costs Could Soar Higher

Just as a road trip is costing more, it’ll also cost more to fly. Costs were already increasing as the travel industry pulled out of the pandemic slump, but steeper increases are likely in the next two or three months since airlines hedge and lock in oil prices—affording them some protection from spikes, industry analysts told The Washington Post.

A 10 percent increase in fuel costs translates to about a 3 percent increase in airlines’ operating costs which could open the door for steeper fares, Robert W. Mann Jr., an industry analyst and aviation consultant, told The Post.

But it depends. Inflation is raising costs at every turn, and “some people will say, ‘I can either fill the oil tank with fuel to heat the house, or I can guy a higher-cost ticket to Walt Disney World to take the family,” Mann told The Post.

That could put pressure on airlines to lower fares, Hayley Berg, the head of price intelligence at Hopper, told The Post.

“But we would expect that if there’s a continuation of a conflict and it does impact oil supply to the U.S. and globally, we would expect higher airfare this summer than we’re forecasting right now,” Berg told The Post.

Some Food Costs 30 Percent More

High fuel prices are making a trip to the grocery store even more painful than it already was.

“It’s going to cost us $106,000 more just in diesel fuel to operate at the same capacity as we did in 2021,” Virginia farmer Ben Smith told The National Desk.

KraftHeniz Co. said in a Jan. 24 letter to customers obtained by CNN Business that it is raising prices on some pantry staples. The most dramatic price increase: It’ll cost 30 percent more for Oscar Mayer turkey bacon. More modest cost increases include:

• Coffee products: 5 percent
• Velveeta Fresh Packs: 6.6 percent
• Cold cuts and hot dog: 10 percent
• Kool-Aid and Capri Sun drink packs: 20 percent

General Mills plans to increase costs on dozens brands, from popular breakfast cereals such as Cheerios, Wheaties, Cinnamon Toast Crunch, Lucky Charms and Reese’s Puffs to other items such as Progresso Soups, Yoplait yogurts, Fruit Roll-Ups, Betty Crocker and Pillsbury.

“There’s nothing immune from price increases,” Tony Sarsam, chief executive officer of food retailer and distributor SpartanNash Co., told The Wall Street Journal.

One trend to watch: The heavier the vegetable, the higher the freight costs and the cost at the grocery store, supermarket executives told The Wall Street Journal. That means items such as potatoes and celery are likely to get more expensive.

‘Shrinkflation’ Costs You More

“Shrinkflation” is also at play. Doritos bags have five fewer chips, and bag sizes are smaller at 9.25 ounces, down from 9.75 ounces, a Frito-Lay spokesperson told Quartz. But they cost the same.

Wheat Thins boxes are even thinner now, with around 28 fewer crackers. Consumers are also getting fewer M&Ms and less Gatorade — though the maker of the sports drink said the 4-ounce smaller bottles cost more because of the redesign.

“Basically we redesigned the bottle, it's more aerodynamic and it's easier to grab,” a spokesperson for PepsiCo, maker of Gatorade, told Quartz. “The redesign generates a new cost and the bottles are a little bit more expensive … this is only a matter of design.”

Another example of shrinkflation, according to Quartz: You’ll get one less brushing from a tube of Crest 3D White Radiant Mint toothpaste.

Happy Hour Buzz Kill

“Boozeflation” is expected to get worse with rising gas prices, too. Brewers and distillers are already paying more for grain and almost everything else it takes to make their products.

Bracing for the typical pre-holiday stocking of liquor cabinets, Ryan Friesen — the head distiller for Santa Ana, California, Blinking Owl Distillery — and others in the industry held prices at bay to give their customers a break.

“The trend has been to absorb this as long as possible,” Friesen told the Los Angeles Times in December. “That will come to an end. It has to. If we’re absorbing an extra — and I am not kidding — 100 percent increase in our freight costs, for example, we can’t take that hit forever.”

The farther the distance wine, beer and spirits have to travel to get to you, the more they’re likely to cost. One way to save is by supporting local breweries, distilleries and wineries.

The Cost To Keep Clean

Procter & Gamble — which manufactures Pampers diapers, Tide detergent, Gillette razors and a wide range of other personal care and hygiene products — plans to continue increasing prices in 2022.

The consumer-products giant, which saw a 6 percent increase in sales in the fourth quarter of 2021, is betting that demand will remain strong for its products.

“The consumer is very resilient and very focused on these categories of clean home and health and hygiene,” P&G finance chief Andre Schulten said in an interview with The Wall Street Journal.

Procter & Gamble raised prices on 80 percent of products sold in the United States, CNBC reported.

Patch Editor Kate Fishman contributed to this story.