Food Prices Were the Most Unexpected Expense for Americans Last Year — But Not Gen Z
Written by
Josephine Nesbit
Edited by
Jana Lynch
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The recent surge in consumer prices – up by 3.5% from a year ago – has sparked concerns about stronger-than-expected price pressures. A GOBankingRates study revealed that for most Americans, food prices were the biggest unexpected expense this year, a trend that Gen Z did not mirror.
When respondents were asked about the biggest unexpected expense they had this year, nearly 44% of Gen Z respondents, or those between the ages of 18 and 24, cited gas and transportation costs. The majority of millennials, Gen X and baby boomers said food prices were their biggest unexpected expense so far this year.
According to the Consumer Price Index (CPI), food prices increased by just 0.1% in March but were up 2.2% year-over-year. The U.S. Department of Agriculture also released its forecast for 2024, showing all food prices are expected to increase by 2.5%, while food-at-home prices are predicted to go up by 1.6%.
The CPI’s gasoline index, which tracks prices for all kinds of gas, increased 1.7% in March and 1.3% over the past year. New and used vehicle prices fell in March, 0.2% and 1.1%, respectively, while transportation costs saw a 1.5% increase.
Experts told CBS MoneyWatch that the cost of gas was the largest factor in the recent jump in inflation last month. This trend could likely continue in April and gas prices are likely to head higher this summer, according to AAA. Peak driving season is coming, and the yearly switch by refineries to costlier summer gasoline has increased the national average for unleaded gasoline to $3.63 as of April 15.
“The West Coast is likely to see gas prices continue to jump, and in a week or so, will be joined by the mid-Atlantic and Northeast states as they wrap up the transition to summer gasoline,” GasBuddy noted in a blog post and as reported by CBS MoneyWatch.
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