Overview:
The consumer price index for the Los Angeles region released by the US Bureau of Labor Statistics on Wednesday confirmed the fears of many, as prices in this region rose by 0.2 percent in July and by 3.4 percent compared to the previous year.
If you get butterflies in your stomach every time you see a bill at the supermarket or at the gas pump, it’s not just because you’re paranoia, it’s because your wallet is constantly under pressure from all sorts of directions.
The Los Angeles consumer price index released by the US Bureau of Labor Statistics on Wednesday confirmed the fears of many, as prices in the region rose 0.2 percent in July and 3.4 percent year-on-year. The Consumer Price Index for All Urban Consumers (CPI-U) takes into account product categories such as food, housing, transportation and medical care, which reflect consumers’ daily lives.
Although CPI-U numbers have been rather stagnant in recent months, there has been an upward trend in this area since June 2023, slowly rising again after a sharp post-pandemic price decline in winter 2022 and spring 2023.
Despite the overall increase, the report also noted some positives, such as a 0.9% drop in the energy index, caused by a 3% drop in gasoline prices. The drop in gasoline prices reflects the slight relief Americans are feeling at the pump. A report from GasBuddy says the national price of gasoline averaged $3.41 per gallon on Monday, and diesel prices in particular continued to fall.
“As the summer season slowly comes to an end, we continue to see gasoline prices falling in most parts of the country as demand remains subdued,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Incredibly, the decline has also caused diesel prices to fall to their lowest levels since the Russian invasion of Ukraine.”
The national and Los Angeles price drops also match local values. In Santa Monica, prices have dropped sharply during the summer months, even at the height of holiday travel. From June 11 to August 13, 12 of the 14 stations covered each week in the Daily Press’ Gas Buddy graphic saw price drops ranging from 26 to 80 cents per gallon. Over the two months, the 14 stations’ prices dropped an average of 41 cents per gallon.
Los Angeles saw the smallest noticeable decline in food prices, at 0.1%. The bureau divided the essential items into six categories: grains and baked goods, meat, poultry, fish and eggs, dairy and related products, fruits and vegetables, soft drinks and other food items.
While food prices have technically gone down, it still doesn’t feel that way to grocery shoppers, and a look at the country’s overall costs shows locals why. In both Santa Monica and Los Angeles, prices for everyday groceries are above the national average in many cases, according to pricing databases Numbeo and Payscale.
According to Payscale, grocery prices in Santa Monica are 11% higher than the national average, and Numbeo provides details. For a dozen eggs, the average price in Santa Monica and Los Angeles is $4.91, more than a dollar above the national average ($3.68). This trend continues when you look at a loaf of fresh white bread, which costs $3.58 nationally, $4.41 in Santa Monica, and an even more expensive $5.07 in Los Angeles.
When it comes to prices, one of the most highlighted categories is usually housing, which is up 0.6% in the CPI-U (taking rent and utilities into account) and 4.8% year over year. Payscale adds that housing costs in Santa Monica are a staggering 389% higher than the national average, while utilities are 11% higher than average.
One bright spot is that the average rent in Santa Monica has dropped 4.9% over the past year, according to ApartmentList. The current average rent is $2,307 per month for a one-bedroom apartment and $2,765 for a two-bedroom apartment. Of the 26 cities in the greater Los Angeles area, the 4.9% drop is the second largest, with only West Hollywood falling 5.3%.
