Local inflation rate takes biggest jump since 1980 to 5.4%

Your checkbook isn’t lying. Local ostentation is soaring astatine a gait not seen since 1980.

Los Angeles and Orange counties’ portion of the Consumer Price Index jumped astatine a 5.4% yearly complaint successful October compared with conscionable 0.7% a twelvemonth earlier arsenic the system was struggling with coronavirus-related challenges. The upswing is being felt crossed the nation, too. U.S. ostentation was 6.2% vs. 1.2% successful October 2020.

Inflation’s culprits scope from greater request for goods and services created by a recovering system to spending sprees from folks emerging from coronavirus lockdowns and assorted kinks successful the planetary proviso chain.

These pressures person sharply boosted the section prices of things specified arsenic gasoline (up 39.5% successful 12 months, according to the section CPI), utilized vehicles (up 25%), and big-ticket location furnishings (up 8.4%).

So fto my trusty spreadsheet connection immoderate humanities position to this cost-of-living upheaval.

October’s 5.4% wide ostentation complaint was the highest section speechmaking since July 2008, successful the days earlier a lodging roar imploded into the Great Recession. And since 1983, aft the precocious ostentation of the 1970s, the section CPI has soared faster lone 15 times.

How rapidly ostentation soared this twelvemonth mightiness beryllium the astir stunning change.

October 2020’s 0.7% complaint tied a five-year low. Next came a 4.7 percentage-point leap successful ostentation implicit 12 months. It’s the 12th largest one-year summation since 1960. The past clip L.A.-O.C. was deed by a larger one-year popular was successful July 1980, erstwhile ostentation went to 15.8% from 10.5%.

You see, the portion has been comparatively spoiled, inflation-wise, successful the post-Great Recession years.

LA-OC’s outgo of surviving roseate connected mean 1.6% successful past year’s pandemic-scarred system aft rising 2.9% successful 2016-2019 and 1.2% successful 2009-15.

Note that we often spot faster ostentation successful roar years. In the bubble epoch of 2000 to 2008, CPI grew astatine a 3.4% yearly gait successful LA-OC vs. 2.6% successful the slower-growth 1990s.

What’s up

By CPI math, present are October’s ostentation rates for cardinal LA-OC spending categories …

Home energy: Costs are up 16.9% successful the past year.

Food: Grocery prices roseate by 5.5%. Eating retired besides got 5.9% pricier.

Housing: Overall, this disbursal roseate 3.1% arsenic rents were 1.5% pricier.

Medical: Hospital and doc bills were 1.9% costlier.

All section services: 3.5% much expensive.

Apparel: Clothing was 1% costlier.

Vehicles: It’s not conscionable utilized cars. New ones are 9.5% pricier — if you tin find one.

Elsewhere?

Inland Empire: The ostentation complaint to the eastbound was 6.5% 2 months ago, the latest bi-monthly speechmaking for Riverside and San Bernardino counties.

Elsewhere successful the West: Bay Area ostentation successful October was 3.8%. Seattle was astatine 6.5% and 7.1% for Phoenix.

Extremes: Highest of 23 metro areas? Atlanta astatine 7.9%. Lowest? Bay Area’s 3.8%.

Jonathan Lansner is concern columnist for the Southern California News Group. He tin beryllium reached astatine jlansner@scng.com