LA-Orange County inflation hits 8.6%, highest since March 1982

Inflation in Los Angeles and Orange counties ballooned at an 8.6% annual rate in June — the biggest jump in the cost of living since March 1982.

You don’t need a price index to know prices of everything from gasoline to groceries to used cars to electricity are skyrocketing. But the local slice of the Consumer Price Index shows just how rapidly the cost of living’s upward pace has quickened — up from 8% in May and 4% in June 2021.

The cost of living is a national headache, stats from the Bureau of Labor Statistics show. The U.S. inflation rate for June was 9.1%, the highest since December 1981. And the CPI for Pacific states rose at an 8.3% pace.

Elsewhere in the West, Bay Area inflation was 6.8% for June while Seattle had 10.1% vs. Anchorage’s 6.8% and 12.3% for Phoenix. Inland Empire inflation was 9.4% two months ago, the latest bi-monthly reading of overall inflation for Riverside and San Bernardino counties.

Please note the so-called “core” inflation rate, the cost of living — minus food and energy.

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This curious price yardstick rose 4.4% in June. It’s tracked by the inflation fighters at the Federal Reserve to see price pressures without “volatile” — some might argue “much-needed” — components of the CPI.

Inside the June report, you get to see what’s fueling local inflation fires to 40-year highs …

Fuel: Gasoline in L.A.-O.C. cost 50% more in the last 12 months, by CPI math.

Household energy: Cost of electricity was 21% more. Natural gas? 39% more.

Food: Groceries rose 12% as eating out got 6% pricier.

Housing: The roof over your head cost 5.9% more.

Medical: Bills were 5.5% costlier.

All local services: 6.2% costlier.

Apparel: Clothing was 7.5% more expensive.

Big-ticket items: The cost of “durable goods” (such as appliances and furniture) was 8.9% higher.

Recreation: Having fun is 5.5% pricier.

Vehicles: New? 9.8% pricier. Used? 7.5% pricier.

So, what was happening back in March 1982 when inflation was higher?

The national economy was in a recession that lasted until November 1982. Mortgage rates ran 17%. President Ronald Reagan’s economic sanctions against Libya boosted oil prices.

Construction started on the Vietnam Veterans Memorial in Washington, D.C. Comedian John Belushi was found dead of a drug overdose in Hollywood at age 33.

Tops at the box office was “On Golden Pond,” and No. 1 on the music charts was “Centerfold” by The J. Geils Band and “I Love Rock ‘n’ Roll” by Joan Jett and the Blackhearts.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

Source: Orange County Register