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First, the good news.
Now for some not-so-great news.
Some very common categories of goods and services haverisen by shocking amounts over the past five years.
Here are four of the big ones.
Auto Repair
Heres an inflationary area that might surprise you, especially with its outsized number.
One reason is you dont see your auto mechanic all that often, hopefully.
But if you did notice, Kates said there are a few things going on here.
One is simply that employee wages rose significantly during the pandemic, impacting industries everywhere, he said.
But another reason is technology.
Insome technological areas, like computers and televisions, prices have actually dropped.
But, Kates said, in auto repair, tech actually increased prices.
More skill equals higher wages.
Auto Insurance
Right about now public transportation is probably looking a lot better.
Yes, that car or truck is costing a lot more than it did in 2019.
Part of it is the creeping inflated cost of your auto insurance.
Higher home and auto prices translate to higher insured amounts.
Higher material and repair costs increase insurer costs, which are passed on to consumers, Kates said.
Storms andpoorer driving post-pandemicalso contribute to higher insurance costs.
But its not merely the normal, expected appreciation of real estate.
Historically low levels of supply have naturally pushed prices up, Kates said.
We have had chronic under-building on new homes since 2008, which has compounded over the years.
To slow the housing price inflation Kates said we will need aggressive building.
But in actuality, this number isnt that surprising once you look under the hood.
According to the National Restaurant Association (NRA), based onU.S.
Thats not how inflation is measured, he said.
We wouldnt expect businesses to leave money on the table voluntarily.
Lower inflation doesnt mean lower prices, it means prices that arent constantly rising.
Any less and they risked losing money.
What Does This Mean for the Future?
You might be asking what comes next.
Will high inflation return?
And what can the government do to slow it?
Emphasis on could, because there have been successful measures to lower inflation.
As for what you might do?
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