Inflation Lingers At 7.8 Percent In PA As Prices Remain Sky High

PENNSYLVANIA — Inflation remains at a near-historically high level in the mid-Atlantic region, breaking the bank for many Pennsylvanians who are still paying significantly more for numerous items. Aside from a midsummer spike to over 9 percent, at no point in the last 40 years has inflation been as high as it is right now much of the east and throughout the greater Philadelphia area.

Inflation sat at 7.8 percent in the Philadelphia-Camden-Wilmington metropolitan region in November, the same as it was in October and 0.6 percent higher than August, according to the new Bureau of Labor Statistics report. That's despite a slight national decrease from 7.7 to 7.1 percent over the past month.

While Pennsylvania's gas prices have dropped — the state sits at $3.75 a gallon Tuesday, down from about $4 a month ago — prices remain nearly as high as they've ever been in nearly all sectors.

Costs of food are up 13.1 percent and costs of housing are up 9.1 percent in the Philadelphia-Wilmington-Camden area, according to the most recenlty available statistics published by the government in October.

And economists warn inflation isn’t expected to return to levels they were accustomed to anytime soon.

Nationwide in November, prices for food and shelter continued to increase, the government said. Rising housing costs more than offset the 1.6 percent month-over-month decreases in energy costs, and the cost of food increased 0.5 percent from October to November, according to the report.

The cost of meat and eggs fell 0.2 percent over the month after increasing 0.6 percent in October. Beef prices fell 0.8 percent over the month, and pork prices 0.3 percent.

But the costs of fruits and vegetables increased 1.4 percent in November, after falling 0.9 percent in October. The costs of cereal and bakery products increased 1.1 percent, and dairy and related products increased 1.0 percent. Non-alcoholic beverages also cost more, rising 0.7 percent in November after a 0.5 percent rise in October.

November was the fifth straight month the consumer price index decreased, and it’s at its lowest level since December 2021. The 7.1 percent CPI is down from 7.7 percent in October. On a month-to-month basis, the CPI rose just 0.1 percent in November, a decrease from 0.4 percent in October.

The Federal Reserve is still expected to raise its benchmark interest rate for a seventh time this year when it meets on Wednesday, a move that will further increase borrowing costs for consumers and businesses. Economists warn that by continuing to tighten credit to fight inflation, the Fed is likely to cause a recession next year.

Housing costs, which make up nearly a third of the consumer price index, are still rising. But real-time measures of apartment rents and home prices are starting to drop after having posted sizzling price acceleration at the height of the pandemic. Fed Chair Jerome Powell said said those declines will likely emerge in government data next year and should help reduce overall inflation.

The Associated Press contributed reporting.