If there’s butterflies in your stomach whenever you see a bill at the grocery store or at the gas pump, it’s not just paranoia, it’s the continual squeezing of the wallet from a host of sources.
Wednesday’s release of the Los Angeles area Consumer Price Index from the U.S. Bureau of Labor Statistics confirmed the feelings of many, as area prices were up by 0.2% in July and up 3.4% from a year ago. The Consumer Price Index for All Urban Consumers (CPI-U) takes into account item categories like food, housing, transportation and medical care that represent the day-to-day living of consumers.
Though the CPI-U numbers have been more stagnant the past few months, an upward trend has been afoot in the area since June 2023, slowly climbing back up after a sharp post-pandemic fall of prices in Winter of 2022 and Spring of 2023.
Despite the overall increase, some positives were represented in the report, such as an 0.9% drop in the energy index, brought on by a 3% fall in gasoline prices. The gas drop mirrors the slight relief Americans are feeling at the pump, with a GasBuddy report stating that the national gas average was $3.41 per gallon as of Monday, and diesel prices in particular have deflated further.
"As summer driving season comes to a gradual close, we continue to see gasoline prices declining in most of the country as demand remains muted," said GasBuddy head of petroleum analysis Patrick De Haan. "Incredibly, the drop has also caused diesel fuel prices to crumble to their lowest level since before Russia’s invasion of Ukraine."
The national and Los Angeles decreases also match up locally, with Santa Monica prices taking a strong dip over the summer months, even during the height of vacation-bound driving. From June 11 to August 13, 12 of the 14 gas stations covered each week in the Daily Press’ Gas Buddy feature graphic saw drops anywhere from 26 cents per gallon to 80 cents per gallon. Averaging the two-months stretch, the 14 gas stations dropped an average of 41 cents per gallon.
Food prices in Los Angeles saw the slightest of noticeable decreases, 0.1%, with the Bureau breaking the necessity into six categories: Cereals and Bakery Products, Meats, Poultry, Fish and Eggs; Dairy and Related Products, Fruits and Vegetables, Nonalcoholic Beverages and Other Foods.
Although food costs are technically down, it still doesn’t feel that way for grocery shoppers, and taking a macro view of the nation’s costs shows locals why. According to pricing databases Numbeo and Payscale, both Santa Monica and Los Angeles prices on everyday foods blow past the national average in many cases.
Per Payscale, Santa Monica’s grocery prices are 11% higher than the national average, with Numbeo providing specifics. For a dozen eggs, both Santa Monica and Los Angeles’ average prices are at $4.91, more than a dollar over the national average ($3.68). This trend continues when looking at a loaf of fresh white bread, which is $3.58 nationally, $4.41 in Santa Monica and an even more pricey $5.07 in Los Angeles.
When speaking on prices, one of the most highlighted categories is usually housing, which went up by 0.6% in the CPI-U (taking into account both rent and utilities), and 4.8% year-over-year. Payscale adds that housing expenses are a jaw-dropping 389% higher in Santa Monica than the national average, while utility prices are 11% above the average.
One silver lining is that median rent in Santa Monica has dropped 4.9% over the past year, according to ApartmentList, with a current median rent being $2,307 per month for a one-bedroom and $2,765 for a two-bed. Out of the 26 cities within the Los Angeles metro area, the 4.9% drop is the second-sharpest, trailing only West Hollywood’s 5.3% fall.
