STAFF REPORT

Inflation in the Inland Empire remained unchanged over the past two months as price hikes in certain sectors were balanced by declines in others, according to data released Thursday by the U.S. Bureau of Labor Statistics (BLS).

The Bureau’s bimonthly Consumer Price Index (CPI) report, covering northwestern Riverside County and the cities of Ontario and San Bernardino, revealed that the region’s inflation rate stayed flat compared to the summer months, which had seen a modest increase.

The most significant decrease was in the energy sector, which saw a 1.9% decline in prices for August and September, largely due to falling gas prices. Additionally, shelter costs, including property rents, dropped by 0.5%, and the cost of recreational activities, such as tickets to entertainment venues, decreased by 2.7%.

However, other areas saw rising prices, including grocery costs, which increased by 1.2%. Healthcare expenses and apparel prices also surged, climbing by 1.6% and 5.2%, respectively.

Looking at the longer-term trend, the Inland Empire’s CPI was 1.4% higher compared to the same period last year. The most substantial year-over-year increase was in healthcare, which jumped by 7.7%. Rent costs were up by 3.6%, and grocery prices rose by 3.1%. On the flip side, energy prices plummeted by 14.4% over the year, while miscellaneous goods and services fell by 4.9%, and household furnishings dropped by 3.3%.

Nationally, inflation was up 0.2% last month and has risen by 3.3% over the past year. The persistently high inflation has impacted most sectors of the economy, and explanations vary. The Biden administration has pointed to the war in Ukraine and its impact on energy supplies as key drivers. Critics, however, argue that domestic energy policies and increased federal spending are contributing to the problem.

As of November 2023, the national debt stood at $35.3 trillion, with annual interest payments surpassing $1 trillion, according to Bloomberg News. Additionally, Moody’s Investors Service downgraded the U.S.’s credit rating outlook from “stable” to “negative” due to these economic challenges.

The Federal Reserve has been attempting to curb inflation by adjusting its benchmark lending rate. After gradually increasing rates throughout 2022 to reduce liquidity, the Fed paused hikes in late 2023. Last month, the Federal Open Market Committee reduced rates by 0.5%, bringing the rate down to around 5%, signaling the belief that inflation may be stabilizing.

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