Inflation Slows, But Illinoisans Still Feel Pain At Grocery Store

ILLINOIS — Lower gas prices across Illinois, along with cheaper used cars, slowed inflation for a second straight month in August, but the new inflation report released Tuesday painted far from a rosy picture as many other items increased in price.

Consumer prices surged 8.3 percent last month compared with August 2021, down from the 8.5 percent year-over-year increase in July. Inflation is still painfully high as food and energy prices remain volatile, but it’s down from the four-decade high of 9.1 percent in June, the report indicated

The price of a gallon of regular-grade gasoline was $3.71 Tuesday, compared with $3.80 a gallon a week ago, $3.97 a gallon a month ago, and $3.18 a gallon a year ago, according to the AAA fuel price tracker.

Across Illinois, however, the average tank of gas will run motorists $3.91 per gallon with the lowest gas being found in Dewitt County at $3.49 per gallon. Closer to the Chicago area, however, gas remains over $4.00 per gallon in Cook and DuPage County with Cook County drivers paying an average of $4.43 per gallon, according to AAA.

In Lake County, gas is $3.95 per gallon, while in McHenry County, prices stand at $3.86 per gallon and $3.99 in Kane County. Drivers in Will County are paying an average of $3.97 per gallon, according to AAA.

Used vehicle prices are declining but still remain about 7.8 percent higher than at this time last year. Airfares are declining as well, down -8.8 percent from July, though they remain 33.4 percent higher than a year ago.

Slowing inflation in those sectors aside, many Illinois residents continue to struggle with grocery bills, home energy costs, and rent.

Nationally, grocery prices are about 11.4 percent higher in the 12-month period ending Aug. 30, and electricity and natural gas together are 19.8 percent higher. Monthly rent costs are about 6.7 percent higher than a year ago.

Food prices increased 0.7 percent for the month of August across the state. Prices for food at home jumped 0.5 percent as three of the six major grocery store food group indexes increased over the month, data shows.

Categories that saw jumps in prices included fruits and vegetables (2 percent) meats, poultry, fish, and eggs (1.1 percent( and other food at home (including sugar, sweets, fats, and oils, for example) jumped 0.5 percent. Over the past year, food prices in Illinois have increased by 10.4 percent, the report said.

In the greater Chicago area, the consumer price index in August stood at 8.8 percent which is down 0.1 percent from July, the report indicated.

Medical costs also increased 0.8 percent from July, for a year-over-year increase of 5.6 percent. Other increases in August were seen in the costs of home furnishings, household operations, new vehicles and insurance, and education.

Excluding the food and energy categories, so-called core prices jumped 0.6 percent from July to August, higher than many economists had expected and a sign of the persistence of inflation, which remains far higher than many Americans have ever experienced.

The Federal Reserve is expected to announce another big interest rate hike at its September meeting next week to tame inflation, Reuters reported. The contemplated 75-basis-point interest hike would be the third this year.

Inflation is a central issue in the Nov. 8 midterm elections. Economists generally agree with Republicans who blame President Joe Biden’s $1.9 trillion stimulus package for the inflation surge but also point out that snarled supply chains, the war in Ukraine, and widespread shortages of semiconductors have also contributed.

Inflation is losing some of its steam as a midterm issue. It dropped to the No. 2 national issue, behind threats to democracy, in a poll by NBC News last month.

The supply chain disruptions of the pandemic appear to be easing, too. General Motors has said overseas production of semiconductors has resumed to about 80 percent of pre-pandemic levels, putting auto manufacturing back on track.

Executives at Kroger, the nation’s largest grocery chain, said flailing prices for farm commodities such as wheat and corn are expected to slow the double-digit increases Americans have seen in the prices of meat, milk, and fruits and vegetables.

The Associated Press contributed reporting.