Officials: As inflation surges, families struggle to pay bills

As the federal government reported a 40-year high in inflation, Connecticut officials say families are struggling to make ends meet, particularly when it comes to rent, heating oil and other costs of keeping a roof overhead.

On Wednesday, the U.S. Bureau of Labor Statistics reported the Consumer Price Index rising a half-percentage point in December, nudging the 12-month increase to 7 percent, the highest mark in 40 years. Product companies and vendors continue to cite staff shortages in passing on higher costs to consumers and businesses.

Higher prices are hitting at a time when there are plenty of job openings in Connecticut and nationally, but many pandemic assistance programs are winding down and landlords are increasing rents as leases expire.

Adding to the pressure for working parents are the continued interruptions in school and child care programs as officials attempt to limit transmission of COVID-19.

Speaking Wednesday during an online news conference detailing an expansion of Connecticut’s earned income tax credit program, a Connecticut Voices for Children official said many families continue to struggle because of higher prices and limited income opportunities.

“Survey data indicates that 646,000 Connecticut adults are having difficulty covering the usual household expenses,” said Emily Byrne, executive director of Connecticut Voices for Children. “Eleven percent of parents and guardians — that’s 90,000 Connecticut parents and guardians — reported that their children aren’t eating enough because they can’t afford to pay for food.”

The price surge has been dominated by gasoline and fuel oil, with gas prices up by half nationally from December 2020 and heating oil up 41 percent, according to Consumer Price Index data published by the Bureau of Labor Statistics.

AAA computed a Connecticut average of $3.49 for a gallon of regular as of Wednesday morning, up $1.12 from a year ago. For many cars, that costs drivers an extra $13 to $15 at the pump, and more for SUVs and pickup trucks with larger tanks.

In Connecticut, heating oil prices were 44 percent higher from December 2020, and popped another 10 cents entering January to average $3.36 a gallon. For the Connecticut house burning 700 gallons of oil this winter, that would increase the cost by nearly $800 for that household.

Heating oil prices are still well below their levels in the winter months of 2012 through 2014, when they routinely topped $4 a gallon and reached $4.35 in mid-February 2014.

For those in the market for a vehicle, new car prices are up close to 12 percent from a year ago, and used car prices are up 37 percent as some buyers look for alternatives.

Grocery prices rose 6 percent nationally last year, driven by across-the-board increases in proteins. Beef and pork spiked 8 percent to 10 percent on average depending on the variety or cut, with poultry and seafood up about 5 percent on average.

Household budgets got a break in a few other product categories, however, including fresh vegetables, which were up about 1.5 percent on average despite higher fuel and labor costs incurred by many farmers; and dairy, which rose only a percentage point or two nationally.

In its December forecast, the U.S. Department of Agriculture sees “food at home” prices edging up further this year, but at a far more moderate rate of up to 2.5 percent across all categories.

Alcohol prices have also been kept in check nationally, in part due to distributors increasing stocks in anticipation of the pandemic disruptions.

According to Blake Leonard, vice president of Stew Leonard’s Wines in Norwalk, shipments from New Zealand are now averaging more than 20 days from the normal window of about eight days.