The recent economic data reveals a concerning trend in core consumer prices, which have continued to rise for the 53rd consecutive month, reaching a new record high. This persistent inflationary pressure has significant implications for both the national economy and California specifically.
Core Consumer Price Trends
In October 2024, core consumer prices, which exclude volatile food and energy costs, increased on a month-over-month basis for the 53rd straight month. The year-over-year pace of core inflation re-accelerated to 3.33%. This sustained increase in core prices indicates that inflationary pressures remain entrenched in the economy, despite efforts to bring them under control.
The overall Consumer Price Index (CPI) for October rose by 2.6% compared to the previous year, up from 2.4% in September. This uptick suggests that the period of consistent price reductions may be stabilizing after more than two years of gradual cooling.
Impact on California
California, like the rest of the nation, is feeling the effects of this persistent inflation. In the San Diego area, which can serve as an indicator for broader California trends, the CPI for all urban consumers increased by 2.5% over the 12 months ending in September 2024. This suggests that California is experiencing inflation rates similar to the national average.