Rising inflation tightens summer plans for many in Triangle
RALEIGH, N.C. (WTVD) -- New data shows inflation rose in May to levels not seen since 2023, forcing many families in the Triangle to make difficult financial decisions as higher prices ripple through everyday expenses.
Economists say rising energy costs are driving increases across a wide variety of goods and services, adding pressure to household budgets at the start of the summer season.
"People are just kind of more worried about the economy, less confident that things are going well," said Gerald Cohen, chief economist at the UNC Kenan Institute.
Inflation reached 4.1% in May, the highest rate since April 2023. Families say the spike is affecting how they spend -- and in some cases, whether they spend at all.
"We're not going on vacation this year because of the economy," said Autumn James of Burlington.
Higher fuel costs are a major factor behind the increase, economists say, affecting everything from daily driving to travel and recreation.
"Mine, luckily, only takes 30 (dollars). But it used to be 15 (dollars) like, last year," James said, referring to the cost to fill her gas tank.
Those higher fuel costs are affecting more than just personal vehicles.
"Airlines, certainly, are affected by that, boat gas. So recreational boaters are feeling that at the pump as well," said Chris Edwards of Raleigh.
But rising gas prices are only part of the story. Some workers say the broader economic strain is also reducing income, particularly in service industries.
"I'm a waitress, so people aren't tipping as much as they usually would because everybody is struggling. Everyone.Upper, lower, middle class. Everyone," James said.
Despite rising inflation, economists say consumers are still spending, though likely with more caution. Many are adjusting their habits, opting for shorter trips or cutting back in other areas to make ends meet.
"They're likely to pay less somewhere else, spend less somewhere else, maybe at the restaurant that they're going to on their vacation, or the hotel that they're going to, or take a shorter vacation," Cohen said.
Another concern is wages, which economists say are not keeping pace with inflation, leaving consumers with diminished purchasing power as costs continue to rise.
