We have inflation!
Inflation: Tired of Hearing About It? Me Too — But Here’s Why It Matters
Inflation: Tired of Hearing About It? Me Too — But Here’s Why It Matters
I’m tired of saying the word “inflation,” and I bet you’re tired of hearing it.
But like it or not, it’s shaping our paychecks, our bills, and even how we vote. Ignoring it doesn’t make it go away, it just means we won’t see the storm coming until it’s already overhead.
Every month, the Consumer Price Index (CPI) is released, giving us a snapshot of the cost of living. This isn’t some abstract Wall Street metric. It is a report card on whether we can afford the basics like food, shelter, energy, and healthcare. Lately, those basics have been eating up more of our disposable income, leaving too many households with little or less than what’s needed just to get by.
We already know some of the culprits: housing shortages, medical costs, food supply disruptions, and yes, corporate greed. But the bigger question is: What is our government doing about it? Whether inflation is driven by income stagnation, supply problems, or runaway profits, the first step toward holding leaders accountable is understanding how prices are really moving beyond the headlines and political spin.
So, here’s the Econ Without the Ego June inflation breakdown, based on the official “Consumer Price Index Summary” along with my translation into real-life terms.
The Big Picture
Prices are up 2.7% over the past year. That’s only a 0.03 point increase from last month’s annual rate, but it’s still moving in the wrong direction.
Core inflation (which strips out food and energy) is higher, at 3.1%, up from 2.93% the month before. In other words the prices we can’t avoid are rising faster than the overall average.
On a monthly basis, overall prices rose 0.2% in July compared to June. It doesn’t sound like much, but this “all-in” number has ticked up every month since March — right around when the new and ever changing tariff rates started up.
If we strip out food and energy, core costs jumped 0.3% in just one month. That’s not just a blip — that’s acceleration. Core inflation was 2.78% in April, and it’s been climbing every month since. Again… that’s right about when the tariff war began to bite.
What Really Matters …Your Daily Costs
The government tracks hundreds of categories. I take those numbers, group them into buckets that matter to everyday life, and track the trends. These aren’t abstract statistics, these are the bills you pay every month.
Food:
Up 2.9% from a year ago. This increase has been steady since April, right after higher tariff collections started. We don’t (and can’t) grow all our own food …global supply costs hit us quickly.
Motor Fuel:
Down 9.26% compared to last year. Sounds great… but this drop is shrinking. In April, fuel was 12% cheaper YoY. That “cheap gas” benefit is fading fast and it’s been masking the true inflation rate for months.
Energy Services (Electricity + Natural Gas):
Up 7.23% in a year — and rising every month since March. We were told our self-sustaining, export-boosting energy policy would keep prices low. Clearly, it hasn’t worked out that way.
Shelter:
Up 3.67% from last year. This isn’t about “lifestyle choices” of younger generations, it’s about scarcity, regulation, and unchecked rent/price hikes that keep pushing homeownership and stable rentals out of reach.
Medical Care:
Up 3.5% from last year. It’s hard to justify annual increases when the system is inefficient and riddled with waste… yet here we are.
So, Where Does This Leave Us?
Here’s the truth: July’s CPI numbers point to a dangerous trend, core prices rising month after month, energy savings shrinking, and major living costs like food, housing, and healthcare continuing their climb.
We’re not seeing strong policy action to address the root causes…whether they’re supply bottlenecks, profiteering, or income stagnation. Instead, we’re getting talking points and selective headlines.
If these trends continue, we’re looking at higher costs across the board heading into the fall just as new(er), ever changing tariffs are set to land.
That’s my breakdown of today’s CPI release. Now, I’d like to hear from you.
Where are you feeling the pinch the most? Which bills have jumped the most in your household? Drop a comment, share this post, and subscribe to my Substack to keep getting Econ Without the Ego where we skip the jargon and get straight to what the numbers mean for you.
George
