Reno Reporter

Reno is experiencing the negative impact of inflation as rising prices for food, gas and utilities put a strain on local consumers.

The consumer price index report for September showed prices on consumer goods climbed by 5.4% since last year, representing the largest increase since January 1991. The sharp rise was caused by the rising cost of fuel, food and housing prices. Gas prices increased 42.1% in the last year, rental cars 42.9%, used cards 24.4%, hotels 18%, televisions by 12.7%, furniture by 11.2%, grocery items 10.5%, new cars 8.2%, appliances 7.1%, electricity 5.2%, restaurant prices 4.7% and rent 2.9%

Meanwhile, wages rose to 4.5%, according to the CNBC, suggesting an overall drop in purchasing power.

Rent in the Reno and Sparks area is up by 15% compared to the same time last year, 8 News Now reported Oct. 14. The national average for a gallon of regular gas is $3.35, as of Oct. 18, according to AAA. The average in northern Nevada is approximately $3.889.

Jerome Powell, chairman of the Federal Reserve, has said inflation is transitory due to post-COVID-19 reopening of the economy, Reuters reported. But the continuing rise in prices is testing that assertion.

Speaking at the Peterson Center for International Economics, Raphael Bostic, the Atlanta Federal Reserve president, said inflation will last longer than expected.  

“Evidence is mounting that price pressures have broadened beyond the handful of items most directly connected to supply chain issues or the reopening of the services sector,” Bostic said.  “If we scrutinize that report, we see that three-quarters of the CPI consumer market basket rose at rates higher than 3% during August.”

Some are concerned inflation won’t slow anytime soon. As winter arrives, consumers will pay more to keep their houses warm. Prices for natural gas and propane have already increased 89% and threefold, respectively, over the last year, according to Real Clear Politics.

Keith Jelinek, managing director of the global retail practice at consulting firm Berkeley Research Group, questions where the impact of inflation will end, CNBC reported.

“We’ve seen cost-of-good increases especially in apparel, also costs of inbound shipping with the costs of containers, increases with transportation, trucking to get into distribution centers,” Jelinek said, adding, “... There’s only so much you can pass on to the consumer.”