Great Lakes Wire

Michigan residents are feeling the pinch as historic levels of inflation are impacting their ability to afford the cost of basic goods and services.

The Midwest states, Michigan included, saw a 6.6% jump in the consumer price index (CPI) last year, the Detroit Free Press reports. In the 12-state region alone, energy prices rose 33.3%, food prices rose 6% and prices for used cars and trucks rose 9.8%. 

As inflation continues to get worse in the Midwest, some residents will be forced to cut out leisure activities such as eating out and taking vacations in order to support their families.

Gasoline pump prices have been on the rise in response to a decline in the impact of the pandemic on everyday life and to global tensions spiking oil prices. 

According to the current AAA Gas Price report, areas of the Midwest are experiencing moderate retail gas prices when compared to other areas of the country. Yet, the State of Michigan is paying much more at the pump than it was 12 months ago. The average for regular gas is $3.35 per gallon; the average for mid-grade is $3.63 per gallon; the average for premium is $3.97 and the average for diesel is $3.69 per gallon.

The Bureau of Labor Statistics recently released data showing that the Consumer Price Index for All Urban Consumers (CPI-U) rose significantly for 2021. 

The CPI-U is "a measures of the average change in prices over time in a fixed market basket of goods and services" purchased by urban consumers. The CPI-U is based on the cost of food, clothing, shelter, fuels, drugs, transportation costs, medical fees and other essential goods and services.

According to the report, the CPI-U increased 7% from January to December 2021. This is the largest 12-month increase the country has experienced in 40 years –  the last record high was in June 1982.

The CPI-U food index alone rose 6.3%, while the energy index increased by 29.3%. The 12-month increase for food at home was 6.5%, as “all of the six major grocery store food group indexes increased over the period.” The index for meats, poultry, fish and eggs took the greatest hit with a 12.5% increase throughout 2021.

A McLaughlin & Associates poll suggested Americans are noticing.

In the January 2022 survey, 52% of Americans who responded to the poll believe the country is currently in a recession, while 40% believe the U.S. economy is not in a recession. These numbers are drastically different from those of January 2021. When asked a year ago, nearly 70% of Americans felt the U.S. economy was not in a recession and less than 25% said it was in a recession.