Here’s Where Inflation is Raising Your Living Costs the Most

You’ve probably felt inflation’s influence in the grocery store, on your utility bills, and at the gas pump over time, though inflation has slowed down this year compared to last. While prices are still on the rise in some areas like transportation and car insurance, they've gone down in others, like gas utility prices.  Overall, the cost of living has gone up 3.5% this year, but that's down from the 8.5% hike we saw last year. 

Moving costs are also up this year, but only by 5%, which is less than half the 12% increase we saw in 2023. With interest and mortgage rates trending down, we may see more people planning a move in 2025.

To see which Cost of Living categories increased (and decreased) the most, we analyzed data from the U.S. Bureau of Labor Statistics.¹ Keep reading to learn where inflation is costing you the most and some tips for saving money while we all wait for prices to even out.

• Inflation is slowing down.
  • The average inflation for all items increased by 3.5% in 2023 compared to 2022. For comparison, the average inflation for all items during the previous one-year period was up to 8.5%. This means that the average price for all items is trending back down. 
• Energy and gas prices are dropping (finally).
  • We're finally seeing some relief at the gas pump and on our utility bills with a drop in both energy and gasoline prices.
  • Energy costs have decreased 2% year over year, currently trending at a 6.8% drop when looking at Sept 2024 compared to 2023.
  • Prices for all varieties of gasoline went down 1.3% year over year, but is currently trending for a 15.3% decrease in September 2024 compared to 2023!
• Prices for moving and rent are still going up, but not as much.
  • Prices related directly to moving have increased by 5% this year, which is down from the 12% we saw the year before
• Rent prices continue to go up, but at a lower rate than the past three years. (Went up 6.6% in 2023, 4.4% in 2022 and 6.35% 2021. Current trend is 4.8% increase as of September 2024 vs 2023.

The table below shows overall percent changes for cost of living items in all categories comparing 2023 to 2022 as well as current trends for September 2024 vs 2023.

The gas station is one of the most obvious places where inflation is impacting consumers. While the average price for gas of all types has skyrocketed last year (climbing a whopping 48%), it went down 1.3% year over year and is trending for a 15.3% decrease in 2024. While it will never again be "cheap," it's nice to see it lower than it has been in recent years.

The best ways to save on fuel are the same as they’ve always been:

• Drive less.
• Carpool when you can.
• Take public transportation whenever possible.

Increased moving costs were a surprising standout in last year’s inflation trends, increasing overall by almost 12%. In contrast, they'e only gone up 5% this year, so that's something.

Here are a few typical moving costs that went up over the last couple of years with inflation and higher interest rates:

• The average cost for moving and storage freight services increased by 6.9%.
• The average price to rent a truck or other vehicle went up by 23.4%.
• Average prices for furniture and bedding have increased by 15.8%.
• The average cost to set up a new internet plan increased by 2.3%.

Here are three great ways to save money on your move:

1. Get estimates from multiple moving companies to compare prices and find your cheapest option.
2. Downsize before your move by selling or donating unwanted items. You can also hire a junk removal company to take useless stuff off your hands.
3. Use our list of moving deals and discounts to find a deal that works for you. 

In the last year, the average utility bill cost in the US has gone down slightly ($583/mo. vs nearly $600/mo). While prices for electricity have stopped climbing, only going up 3% last year compared to 11% the previous year, natural gas and fuel oil prices went down almost 15% year over year. Last year we saw a 21.60% increase in energy prices, so it's a relief to see those numbers go back down. That said, prices fluctuate depending on where you live, so it's still a good idea to save where you can.

Here are several great ways to save on electricity and gas for your home:

• Get a programmable thermostat.
• Get high-efficiency lightbulbs.
• Unplug unused electronics.
• Regularly maintain your furnace.
• Replace your homes air filters.
• Consider switching to solar.

For tips on saving on other utilities like water, TV, and internet, check out our guide to utility bills.

While the increases in grocery prices are slowing, food costs are still going up. We still saw a 2.7% increase in food costs in 2023, trending for 2.3% in 2024, but that's much better compared to the 10% increase in 2022.

Saving on groceries can be trickier than saving on fuel or utilities. You’ve got to eat! That said, it’s possible to get the nutrition you need while saving money. Here are a few tips for spending less on groceries:

• Use coupons.
• Stock up on non-perishables when they're on sale.
• Switch to generic brands.
• Shop at less-expensive grocers.
• Buy groceries in bulk, especially food like rice, beans, pasta that you can get in bigger quantities with less packaging.

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To find out where inflation is affecting consumers the most, we compared the prices for typical goods and services in 2023 compared to 2022. We also pulled the September 2024 numbers compared to 2023 to see current trends for this year.

We sourced our data from the Bureau of Labor Statistics’ Consumer Price Index (CPI), a government resource that measures the change in prices consumers pay for goods and services. To fully understand how quickly prices are rising this year compared to last year, we checked the CPI.

Though the CPI is only one measure of inflation, it offers some of the best data publicly available.

1. U.S. Bureau of Labor Statistics, “Consumer Price Index for All Urban Consumers,” September 2024. Accessed Oct 30, 2024.
2. U.S. Bureau of Labor Statistics, “Consumer Price Index News Release,” October 10, 2024. Accessed Oct 30, 2024.
3. US Department of Agriculture, “Food Price Outlook, 2024,” October 2024. Accessed Oct 30, 2024.