Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Eggs, coffee and air fares hit by biggest price rises as inflation reaches a 41-year high

Eggs, coffee and air fares hit by biggest price rises as inflation reaches a 41-year high

The price of eggs has jumped by more a third in the past year, while coffee is up 29% – far more than the average rate of inflation.
As inflation hit a 41-year high of 8.6% in May, some items are feeling the heat more than others, with the cost of eggs, air travel and coffee all soaring.

A further rise last month after a dip in April dashed hoped that increases had peaked.

Consumer Prices Index (CPI) data from the Bureau for Labor Statistics show some items have increased by more than 50% in the last year.

Products using gasoline have had the fastest price rises in the past year, tied to tight energy supplies as prices at the pump reach historic levels, with unleaded gas up by half since May 2021.

But some everyday essentials, particularly some breakfast favorites, have also increased by much more than the 8.6% average, underlining the strain on consumers' wallets.

The price of eggs rose 36.2% in the last year, instant coffee increased by 28.9%, while the price of margarine has gone up by 25.4%.

Meanwhile, air fares are up by 38.8% in the past 12 months as rising demand for travel combines with high fuel costs and labor shortages.

Retailers including Target and Walmart are dealing with too much stock, which are expected to lead to discounting. However, both still expect to pass rising costs onto customers.

Other companies also plan to raise prices to combat their own higher costs. In a memo to retailers seen by The Wall Street Journal, Kraft Heinz's chief sales officer Cory Onell said rising costs would force further price hikes for its products.

McDonald's head of international business, Ian Borden, said at an investor conference that the fast-food chain was studying the impact of price rises in stores and their effects on consumer demand.

Yet some items have become cheaper in the past year. The average price of televisions fell by more than 10%, while the price of smartphones is down by more than 20%.

The Federal Reserve is raising interest rates in a bid to combat inflation, but some economists fear the economy will be pushed into a recession or suffer from stagflation as a result.

The force of inflationary effects has also varied across the US. In Tampa, rises jumped by an average of 11.3% in May, compared with just 6.3% in New York.

A Florida economist told Insider in May this was largely due to high demand for housing in Tampa, with house sales accounting for 40% of the inflation measure, as well as transport, with Floridians more dependent on car travel than areas like New York.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
×