Why prices on consumer goods are 5% higher now than they were a year ago

The average cost of used cars and trucks has jumped almost 30% amid supply chain complications.
7:55 | 06/10/21

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Transcript for Why prices on consumer goods are 5% higher now than they were a year ago
Inflation fears today are rising around the country as we learned there was an estimated 5% jump in the cost of consumer goods in May of this year compared to last year. As more than what economists were expecting and it's the biggest jump we've seen since the Great Recession in August of 2008 so. What does all this mean for all of us as we shop for everything from groceries to gas. Alexis Krista for some Yahoo! finance and Emily and need boss a public relations director for car affects thank you I'm sorry about that are here to help us. Get a handle on this this is out phenomenon both of you thanks for being here that we haven't seen in decades so Alexis what's behind some of these price rises. Do you think like doesn't everyday household died items. Yeah I unitary get it steadily alarming and scary to lots of folks to see prices rise so quickly each but when you think about it we shouldn't be all that surprised me the economy is basically gone from zero to sixty seemingly overnight as more people get vaccinated and economies begin to open up more and more we're seeing people shopping more dining out more going entertaining and entertainment events traveling more and it all happened so quickly there is a tremendous. Pressure right now on our supply chains there's tremendous demand and companies are just trying to do their best he could imagine we have lots of shipments just sitting in our ports unable to unload their ships yet because you're such a back launch and I mean reason for the past. Is that we're seeing. A supply shortage across the war you know the demand mercy for housing has called cause lumber prices hit. A record high were seeing jump in steel prices. As well let's not forget we got a computer chip shortage a global shortage we're now dealing affecting everything from computer image you like to autos and we're also having a hard time getting furniture and clothing if you're like me I ordered some furniture getting phone calls you gotta wait you gotta wait he's still can't get this supply and so all of that is causing tremendous pressure on consumers we're paying more for everything from food. Autos auto prices by the way more than 7%. Last month and lots a lot of you're looking parental ardidi yet won her you're definitely. Can be paying a premium. And Emily I want to look at a little closer at some of those categories. That Alexis just mentioned because. And when you look at grants for example friends who went up we also saw a huge increase in airfare food is up 4% but used cars and trucks. It security category almost all their own over this time and going up 30%. So when it comes to the used car market. Why are people paying so much more than. Compared to just a year ago. There's your answer is how little this and it really in his supply demand she strains so there is low supplies are linked to well let's talk about. With a chip shortage in new car and entry is scarce should be sure how hard times lots is new cars because they're unable agrees he's cars without. And checks cash. And we see huge consumer demands ray so. People who need historically not a new car are now looking used vehicles especially the recent model year vehicles as well but dealers can not stop there are lots fast enough the car on the car and it's all right away cash and here's saying we're seeing. This huge increase -- 30%. But consumers are willing to pay those prices for these cards right now. So it's really historically never seen used car is as high cash and an inventory so hard to become my people are just not selling retreating and their vehicles right now and a lot of reseller trade issue I'd turn around by camera in the prices are just very high and which we talked to dealers you've been in this business for data Asian Indian never seen anything like. Yes. And Alexis what role is government spending playing and all of us there's a lot of concern especially. Among. A Republicans that the big trillion dollar bills that the president has signed in wants to sign could be fueling inflation what do you think. That's definitely part of the equation cherry we've got the stimulus checks and that added unemployment. Coming to millions of folks some of that now is starting to dry out there's been so much pent up demand. Now that folks a little bit more money. Wages are now starting in July as you're seeing them go out and sandstorm we know without abandoned and that is causing the pressure that we're seeing on these prices and you know I also want to point out food prices in particular which affect all of us going on nearly half percent last month and major companies including Coca-Cola. General Mills hormel should pull lay have why they're all raise prices already. Or they're promising to raise prices and one of the reasons why my good reason they actually have to raise wages to attract more workers. And that means turning to start seeing wage pressures of wage inflation starting to bubble this year. So Alexis is almost tipping point to a temporary or a longer term problem and should we start to expect interest rates to go up to make up for it. Yet that's the big question right at least a Federal Reserve teach saying that Beijing. In this inflation jump is going to be temporary Fed Chairman. How we bounce back so quickly on that near shut down of our country during the pandemic price is just like to operate the fastest rise he's seen in thirteen years but as we all start to open up more and thieves get back to normal. Those prices should either remain where they are that's good news probably not come down but a lot of experts say they don't expect those prices rise much more in the fall and the winter so we could see inflation start to level off after the summer. Let's hope and and Emily. Third time's the charm got your name right finally so what what's to conform to those consumers are out there thinking about buying a car. Oh well what should they know do you see prices cooling off and that is JD Thompson. Believe the couple pac exactly and Aaron the rental car market I was. That you cherish didn't chip shortage with new vehicles and consumer demand so our analysts are saying he expected to at least last summer months and there are some of those. Are you laugh pretty pretty she is so it'll be interesting to watch. It's not changing in the next couple be scared to use its collapse in the summer months people are looking into buying a used car we recommend broadening your search a lot of Gatorade understand we know what color you hear me not only watch if you can be a little more. Broadened his search he you banish me you know you want to Nancy he was a third round. But you're not stuck on color or knee that will give you a lot more options he able to find something in inventory -- the area surrounding Unita is a good price can you just want and not sketch staff so. I think we feel pressure like the housing market situation where becomes hearing in that rich people are meeting really quickly but you still wanna do your due diligence should researchers vehicle as part of the history is nothing in Saudi more than histories or check Karachi where she had an independent inspection parent madness and ash. Katrina cantaloupe cabbage and taken tester reminds you all three of those they each city you can make sure there are surprises here are you paying. These record prices you don't wanna house prices down Granada musical. Because he didn't do your due diligence before you purchased it also worth noting if you if you happen to you one of those people had. How an extra cars sitting around thinking I went for her without first few months. It's a great time to sell especially if you haven't tried. Truck prices are. About 44%. From where they were investing time last year. Great news hard Emily Voss and Alexis could stop first got both your names right there thanks very much thought before.

This transcript has been automatically generated and may not be 100% accurate.

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