Will the Iran conflict end a 17-month inflation low for Los Angeles and Orange counties?<\/p>\n
The regional slice of the Consumer Price Index rose at a 2.9% annual pace in February, the lowest since September 2024. By the way, local inflation averaged 3.5% last year and peaked at 8.6% in June 2022.<\/p>\n
The good news for shoppers\u2019 wallets may be temporary, given a key driver of the inflationary chill: Gasoline was 2.3% cheaper in the 12 months ending in February.<\/p>\n
If you drive, you know that the U.S.-Israeli hostilities with Iran have ballooned crude oil prices. Typical California pump prices surged 60 cents to $5.33 in a week, according to AAA. That also means gasoline prices are 15% higher than a year ago.<\/p>\n
Much of the force behind recently tamer inflation is an overall weaker economy that\u2019s throttling consumer demand. Ponder price swings in some key consumer spending segments from February\u2019s CPI report, ranked by size of cost movements \u2026<\/p>\n
\u2013 Recreation: Off 0.5% in a year. Tight budgets cut discretionary spending.<\/p>\n
\u2013 Vehicles: Off 1%. High sticker prices are making folks drive older cars longer.<\/p>\n
\u2013 Household goods\/operations: Up 0.5%. Fewer home sales and relocation demand.<\/p>\n
\u2013 Apparel: Up 2%. Thin gains likely tied to tariffs.<\/p>\n
\u2013 Groceries: Up 2.9%. Little relief at the supermarket.<\/p>\n
\u2013 Dining out: Up 3.1%. Restaurants can\u2019t charge much more.<\/p>\n
\u2013 Rent: Up 3.3%. This increase should dip as landlords begin to compete.<\/p>\n
\u2013 Medical care: Up 3.7%. Seemingly never-ending upswing.<\/p>\n
\u2013 Tuition\/child care: Up 3.9%. And you wonder why young adults skip parenthood.<\/p>\n
\u2013 Other goods\/services: Up 6.4%. Labor shortages and higher wages add up.<\/p>\n