Prices Forecast to Rise Through 2022, With Some Sectors Facing Larger Surges Than Others

New cars are showcased in the window of a car dealership in New York City, on Oct. 05, 2021. Spencer Platt/Getty Images

From December 2020 to December 2021, overall prices for consumers went up 7 percent, as reflected in the last month’s Consumer Price Index report. The last time the index rose by that much occurred in 1982. The surge marks another milestone for inflation, a growing concern for policymakers and consumers as companies face supply chain issues amid an increase in demand and government stimulus money.

Amid the 7 percent gain during the previous 12 months, a month-to-month look reveals a slight downward shift. Between November and December 2021, monthly inflation declined from 0.8 percent to 0.5 percent. The year ahead, however, could see a continuation of higher levels of inflation, with some sectors seeing increases in prices at a steeper rate than others.

Inflation in the Grocery Aisles

Five of the six major grocery store food group indexes rose in December 2021. Beef prices were up by 14.8 percent compared to the same time the previous year. Roasts increased by 22.1 percent during that same period, while pork went up 15.1 percent and bacon rose by 16.3 percent. On a month-to-month basis, the overall index for meats, poultry, fish, and eggs declined by 0.4 percent from November to December 2021.