The price of gasoline is down, but just about everything else is still getting more expensive – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Washington Wire
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Articles
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be an INNsider.
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Newswires
Washington Wire RSS Get our newsletter
Order Prints
September 14, 2022 Washington Wire No comments
Share
Share
Tweet
Email

The price of gasoline is down, but just about everything else is still getting more expensive

Marketplace

We've said it before, and we'll say it again: The stock market is not the economy. But the stock market sure does react when there's not-so-great news about the economy.

That's what happened Tuesday after the Labor Department reported that the prices we pay for goods and services rose in August. The consensus was that prices would hold steady or even fall a bit.

The news convinced Wall Street that the Federal Reserve would roll out another big interest rate hike when its policymaking committee meets next week — and that really killed the vibe in the stock markets.

Related stories

  • Despite reservations, Senate Health and Welfare recommends Medicaid expansion stay
  • Aon Plc Q4 22 Earnings Conference Call At 8:30 AM ET [Real-Time Trader]

Now, prices on a month-to-month basis rose only one-tenth of a percentage point, or 0.1%, in August. That number would have been a lot higher if the price of gasoline hadn't fallen by more than 10.5%. Meanwhile, just about everything else is still getting more expensive.

Take the price of medical care — up 0.7%. Hospitals and doctors offices are facing the same pressures other industries are facing, like the rising costs of labor and supplies, said Christine Eibner, a senior economist with the Rand Corp.

"Whether it's, you know, cleaning solution or paper for the copiers, things like that, and that all tends to increase prices."

Demand for health care services has increased this year, Eibner added, as the worst of the pandemic has subsided.

"You know, people were maybe afraid of going to the doctor or have an elective procedure done, and so they may have stayed home. But now in 2022, with the return to normalcy, people are using more medical care," she said.

The cost of new vehicles rose 0.8% in August. Sarah House, senior economist at Wells Fargo, said the supply of vehicles hasn't kept up with demand for 2½ years.

As a result, "there's probably a little over 7 million missing sales," she said. "And so whatever inventory dealers can get their hands on, they still have a good degree of pricing power for those vehicles."

Household furnishings were more expensive in August too, even while a lot of retailers tried to get rid of excess inventory.

"Taken as a whole, this suggests that inflation continues to have quite a bit of momentum, and it's going to make the Fed's job pretty hard in bringing inflation down back to its 2% goal on a sustained basis," House said.

Rent rose by 0.7% in August. That number reflects conditions nine months or a year ago, per Mark Fleming, chief economist at First American. Private-sector indicators have found that rents have been moderating.

One reason, Fleming said: The supply of apartments is improving.

"We've built a bunch over the last couple of years that have been sort of stuck in the supply chain morass and been unable to get delivered, so there's a lot of delivery of multifamily units coming online now," he said.

And that could mean rent inflation may have peaked.

Older

Sana Expands Affordable Health Insurance Offerings for Small Businesses to Alabama

Newer

Dow falls 1,250 points, most since June 2020

Advisor News

  • Fed slows rate hikes even as Powell says there's more work to do
  • Mortgage rates in U.S. fall again, hit 6.09%
  • 1 in 3 Americans struggling financially but goal-setting is a game-changer
  • Advisors bet on US stocks to outperform in 2023 amid tech rebound
  • Investors want more ESG information from companies
More Advisor News

Annuity News

  • Study: Does pessimism really suppress annuity sales?
  • Sweet streams of income: ChatGPT, the bard of annuities
  • F&G Annuities & Life announces equity investment in life IMO SYNCIS
  • Investors scrambling to lock in rates propel annuity sales to record highs
  • North American and Annexus launch new fixed index annuity
Sponsor
More Annuity News

Health/Employee Benefits News

  • State: all insurers failed to comply with Oregon Reproductive Health Equity Act
  • Will plan fix California health care?
  • Insurance giant Elevance to move into 15th state
  • Medicare card scam targets seniors for personal info
  • Yes, states are re-checking Medicaid and CHIP eligibility starting in April
More Health/Employee Benefits News

Life Insurance News

  • Chris Wilson tells court former friend Murdaugh confessed he was ‘stealing money’
  • State's motive testimony could prolong Alex Murdaugh murder trial
  • Equitable expands portfolio in VUL market
  • New date set for billionaire suspect accused of bribing state cabinet member
  • House approves bill protecting life insurance payouts from bankruptcy
More Life Insurance News

- Presented By -

Top Read Stories

  • Chicago news roundup: PPP fraud uncovered in Chicago, informant reveals $100K bounty on FBG Duck and more
  • Gov. Carney: Enrollment on Delaware's Health Insurance Marketplace for 2023 Reaches All-Time High
  • 25 people charged in fake nursing diploma operation
  • Missouri Department of Insurance: Over $24 Million Returned To Missouri Insurance Consumers In 2022
  • Connecticut addressing broker shortage amid The Great Unwinding
More Top Read Stories >

FEATURED OFFERS

Meet Encova Life
We know agents matter. You can count on our life team to be high tech, high touch and responsive.

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.