Prices for services rose 3.7% in September from a year ago, according to the personal consumption expenditures price index, the inflation gauge of choice for the Federal Reserve. Overall inflation pressure remains high for many essential consumer services despite falling goods prices.
Home and car insurance inflation also remains stubbornly high. Household insurance premiums were up 10.1% from a year ago, while auto insurance was up 6%. Increased storm damage and more costly parts and labor for repairs are keeping prices high.
The travel sector is also facing sticky inflation. Air transportation costs rose 4.1% in September. Despite some sectors easing, many facing persistent price pressures need to address consumer caution.
Restaurants, traditionally among the harder hit sectors with inflation, saw food services inflation rise 3.6% in September, prompting businesses to adjust menu pricing amidst rising wage costs.
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