The service industries in the U.S., including rent and insurance, are experiencing persistent inflationary pressure, according to the most recent Consumer Price Index (CPI) report. This trend is substantiated by the rise of 6.2% in the housing index over the past year, which has contributed to over two-thirds of the core price growth.
Additional data from the December report shows that medical services witnessed a significant increase of 0.7%, marking the largest surge since September 2022. Airfare also rose by 1%, a peak not seen since August of the previous year. Moreover, prices for accommodations away from home saw a hike of 0.4%, the highest since September 2022.
Significantly, December 2022 saw the price of motor vehicle insurance increase by 1.5%, translating to an annual increase of 20.3% compared to the same period the prior year.