- Even as inflation cools and the economy stays strong, people still feel uneasy about the current outlook.
- That could be due to fun activities, like grabbing coffee or clothes shopping, staying expensive.
- The price of going to a football game or concert, or even just taking care of pets, is rising quicker than inflation.
There's a new lament on social media: It costs $100 just to leave the house.
While perhaps a bit of an exaggeration, it's a conundrum that may be one of the reasons everyone feels so bad about the economy, as seen in survey after survey.
Over the last few years, inflation has been a persistent menace in the economy and on Americans' wallets. Now, price growth is slowing down, but not necessarily for the things Americans want.
In September, inflation held steady at 3.7% year-over-year, which is unchanged from August. But prices on things Americans want to do — like go to movie theaters, buy alcohol, or care for their pets — are still persistently high. For example, admissions to things like movies or concerts are up 10.4% year-over-year — and 18.9% to sporting events specifically, according to September's Consumer Price Index release.
Those costs come at a difficult time for budget-conscious Americans. Student-loan payments are restarting, forcing many to reconsider their monthly spending. Dating is expensive. Making friends costs a lot. Even with wages going up, inflation is making it more costly to go out to eat or even Netflix and chill. No wonder people are so grumpy about the economy.
The country may not be in recession, but there is what's been called a "vibecession." Even if there's not an economic downturn, Americans still feel dreary about how things are going.
A Suffolk University Sawyer Business School/USA TODAY poll of 1,000 Americans, taken from September 6 to 11, found that 70% of respondents said the economy was getting worse. Eighty-four percent of respondents said the cost of living is still rising, and around 70% were eating out less and cutting back how much they spent on clothes.
However, economic data — like the number of jobs the country is adding, and the number of job openings available to workers — shows that the economy is still booming.
"I know I'm starting to sound like a broken record about this, but I will not tire of saying that we are seeing very, very strong economic growth as reflected in job growth," Acting Secretary of Labor Julie Su told Insider after the release of the Bureau of Labor Statistics' monthly employment data.
Even as more Americans land jobs, high inflation has left some Americans in dire straits and disproportionately hits the country's lowest earners. Forty-five percent of Americans surveyed by the Census Bureau for its Household Pulse Survey from August 23 to September 4, said price increases over the last two months were "very stressful," and around 28% found them moderately stressful.
And 62% of those with a household income under $25,000 said price increases were "very stressful," compared to 20% of those making $200,000 or more. Cooling prices will likely help ease some of those respondents' stress.
But as long as prices on the things that people enjoy stay high, their sentiment could stay low, as it has throughout the robust recovery. Here's a breakdown of how the inflation rate of "fun" activities compares to the overall CPI.
Admissions to movie theaters and sporting events
The price of admission to events is much higher than broad inflation this month, coming in at 10.4% year-over-year. Sporting events are particularly pricier this month at 18.9% compared to 12 months ago, while admissions to movies, theaters, and concerts are a little lower at 5.4%. And if you're curious about trying out lessons for tennis or guitar, for example, prepare to pay 6.4% more than you would've last year.
Pets, music, and other recreational activities
Recorded music and music subscriptions are up 6.9% over the last 12 months, while the price of musical instruments increased 7.9%. Looking to take up sewing during meetings or after work? Sewing machines, fabric, and supplies are up 4.8% year-over-year.
Meanwhile pet products are up 4.8% overall — and up 7.6% for pet food. And taking your pet to the veterinarian is also well above broad CPI at 7.0%. Rest assured, though: Reading materials, toys, and sporting equipment are all down this year.
TV subscriptions
Thinking about spending your weekend binge watching your favorite show? That may cost you more than you expected. Cable, satellite, and live streaming television prices are up 6.6% compared to a year ago. The purchase, subscription, and renting of video is slightly above the overall CPI this month at 3.8%. Streaming companies including Netflix are set to increase the price of subscriptions after the writers' strike.
Food away from home
Food costs on the whole are on par with overall CPI, though food away from home, including restaurants, is up much more at 6.0%. Grocery inflation was driven in part by increases in cereals and baked products, as well as nonalcoholic beverages. Cakes and cookies, for example, were up 4.8% year-over-year, while raw steak was up 9.7%. While eggs and dairy were down year-over-year, ice cream was up 4.5%. Coffee, specifically lattes, is also getting more expensive, although coffee inflation is lower than overall CPI.
To be sure, food inflation is at its lowest point in the last 12 months. In September 2022, food inflation was up over 11% year-over-year.
Personal care products
If you're seeing the price of your favorite shampoo, perfume, or moisturizer going up, that's because the prices of personal care products are rising faster than the CPI. The CPI indicator for hair, dental, shaving, and other personal care products is up 7.2% year-over-year, nearly double the rate of average inflation. Haircuts are also getting more costly at 4.8% year-over-year.
Apparel
Though inflation is falling, don't expect all clothing purchases to be coming down at the same rate. Apparel on the whole is below broad CPI, though men's apparel is up 4.7%. Men's shirts and pants are up 5.3% and 8.1% year-over-year respectively. While women's apparel is well below average CPI, women's outerwear is still elevated at 7.4% compared to last year.
Alcoholic beverages and tobacco
Alcoholic beverages are on the whole slightly above broad inflation at 4.2%, though drinks away from home are up about nearly three percentage points more than broad inflation. Distilled spirits at bars and restaurants, meaning cocktails and other strong liquors, are up 7.8% year-over-year, while wines away from home are up 6.7%. Alcoholic drinks at home are slightly under the CPI, though beers and ales are slightly above.
Tobacco and smoking products are also up more than overall CPI this month, coming in at 5.6% compared to 12 months ago, driven by cigarettes.
Club memberships
Many people have been looking to join new clubs to meet new people amid an "epidemic of loneliness," according to US Surgeon General Vivek Murthy. However, expect on average to pay 4.0% more this year than you would've paid last year for shopping clubs and social organizations.
Gas prices
Gas prices are up 3.0% compared to last year, hitting new yearly highs this month — though they could fall from a national average of $3.65 to $3.25 by Halloween as global demand for oil weakens. Gas prices crept higher over the summer — August prices were the highest in 11 months at $3.88.
Have you stopped doing something fun because it's too expensive? Contact these reporters at jkaplan@insider.com and nsheidlower@insider.com.
Disclosure: Mathias Döpfner, CEO of Business Insider's parent company, Axel Springer, is a Netflix board member.
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