🖤 Donations of all sizes power our public service journalism Give Now

Why services inflation is stickier than goods inflation

Oct 27, 2023
Goods inflation has slowed down a lot over the last year, thanks in part to higher interest rates. But the Federal Reserve is having a harder time slowing services inflation.
Services inflation has stayed high because those prices, like for a haircut, are heavily influenced by wages.
Brandon Bell/Getty Images

Inflation for services remains stubbornly high

May 10, 2023
Here's how higher wages, housing shortages and income level can play a role in how much you pay for things like exterminators and car repairs.
Motor vehicle repair prices, which were up 20% in April from last year, can be particularly burdensome for lower-income households.
Jon Cherry/Getty Images