15 statistics to show 2014 was the year of price inflation

The central banks, federal governments and Paul Krugmans of the world may be insouciant regarding price inflation and could be in denial that price inflation has infiltrated the marketplace, but it is gradually soaring because of the trillions of dollars seeping into the United States economy and the economies across the globe.

From food to housing, price inflation can be located in various elements of the market. As the U.S. dollar continues to devalue, the cost of living grows, consumer debt levels skyrocket and wages remain stagnant, the average American will have a very tough time moving forward indeed.

Of course, 2014 has been no picnic either, but the next several years will be a beating when it comes to the prices seen in grocery stores. Deflation has been the keyword coming out of the mouths of Krugman and Janet Yellen, but that’s only something we could hope for once inflation kicks in.

“A Washington correspondent of the Wall Street Journal reports that the government economic experts are now convinced the ‘deflation’ and not inflation will be the big problem six months to a year from now,” economist Henry Hazlitt wrote. “Planners of federal financial policy make no secret of their belief that the danger of post-war inflation was passed in late spring, and that from now on the greater danger lies in too-rapid deflation. Such a belief on the part of the government planners in Washington would not be surprising, the whole economic philosophy they have adopted leads them to believe that ‘the real danger is deflation,’ whatever the evidence may be on the other side.”

Here are 15 statistics to show that 2014 was indeed the year of price inflation:

1. Renters in the United States paid $441 billion this year, an increase of about $21 billion from a year ago. The biggest amount of cumulative rent was paid the New York-Northern New Jersey ($50 billion) and Los Angeles ($34 billion) metros.
2. U.S. beef prices hit a record high this past summer, and are up 76 percent from 2009. The USDA warns that prices are expected to rise another three to five percent in the new year.
3. Wholesale egg prices currently stand at an average record of $2.27, which isup 34 percent from the same time a year ago. In some parts of the U.S., those prices could jump another 20 percent next year.
4. U.S. pork prices jumped 10 percent in 2014 – a pound of bacon averaged $5.46 in February, 13 percent more than a year ago.
5. McDonald’s prices were up three percent, and the company is dropping several items from its $1 menu.
6. Starbucks prices were raised five to 20 cents this past summer as well as a buck for its coffee sold in supermarkets.
7. The Case Shiller Index indicates that home prices have gone up 13 percent in the past year and 20 percent since the housing bubble popped a few years ago.
8. The cereals and bakery products index rose 0.2 percent.
9. A weighted average price increase of eight percent across the Hershey Company’s instant consumable, multi-pack, packaged candy and grocery lines.
10. Milk futures inched 0.7 percent higher to $24.45 per 100 pounds. Retail whole milk for a one-gallon carton was $3.65 in July, the highest retail price for the month since 2011.
11. Lettuce prices will shoot upwards of 34 percent, while broccoli prices are going 22 percent higher.
12. Fresh fruits are expected to rise six percent from the same time a year ago.
13. College tuition rose faster than the official rate of inflation this year. For in-state residents at four-year public institutions, tuition costs rose 2.9 percent to an average total of $9,139.
14. U.S. adults with chronic obstructive pulmonary disease (COPD) paid $6,000 more in medical care than adults who have not been diagnosed with COPD.
15. The price of water in 30 major U.S. cities spiked more than six percent – since 2010, that number has soared to 33 percent.

But of course, there is no price inflation if you eat, drink, sleep under a roof, receive healthcare or get an education. All hope is not lost, though, because banana prices have fallen this year. Paul Krugman must be stacking up those bananas.