BAKERSFIELD, Calif. (KERO) — Inflation continues to be a topic on the minds of many people, and new numbers show just how high it is now. According to the Consumer Price Index, the rate is 9.1 percent higher in June compared to the same time last year.
Food is more expensive. Gas is more expensive. But even buying and then paying off your home is more expensive. And the Bureau of Land Statistics says there’s no sign of this hike declining.
23ABC In-Depth: How Much Have Prices Gone Up?
The Bureau of Labor Statistics reports gasoline has seen the largest increase year-over-year, up more than 61 percent. That's followed by airline fares, up just over 34 percent.
The price of eggs has jumped about 33 percent. Electricity costs are up nearly 14 percent. And groceries as a whole are up more than 12 percent, compared to June of 2021.
Buyers are facing mortgage rates that are four to six hundred dollars higher than they had on the same-priced house in January and February according to Phil Jordan with the Jordan Apartment Guys.
According to Zillow, the median home price has gone up 21 percent in the past year. It’s now at about $$354,165. In California, it's almost $800,000.
Jordan says it’s not a good time for people to buy a home. And may not be for a while.
“The Federal Reserve has a target inflation rate of about two percent. With the CPI – Consumer Price Index - boosting up to nine percent, that puts the pressure on the Federal Reserve to push the interest rates up to slow down the growth. Basically, an attack on housing, because interest rates will go up.”
This in turn pushes those mortgage rates up.
Trends show that interest rates will remain up to some degree until inflation goes back down to the Federal Reserves’ desired two percent. Where our economy is right now, Joran is projecting that to be the case for the next six to twelve months.
There is hope though. Jordan says in comparison to the rest of the California market, Bakersfield has some of the lowest home prices. And Jordan anticipates the inflation rate potentially peaking this summer.