Consumer News: Consumer prices rose 0.3% in December, led by shelter and recreation costs

The warehouse club that outcooked Costco

• Sam's Club beat Costco. Consumer Reports ranked Sam's Club's rotisserie chicken No. 1 for flavor, with Costco finishing a close second.

• It wasn't just a taste test. Researchers also checked weight, sodium, texture, and PFAS. No chickens or packaging tested positive for "forever chemicals."

• Save more. Buy chickens fresh, compare price per pound, and use leftovers for soups, tacos, salads, or freezer meals.

For years, Costco's famous $4.99 rotisserie chicken has been the undisputed king of ready-to-eat grocery meals. But a new taste test says there's a new champion.

According to USA Today, citing a new Consumer Reports evaluation, Sam's Club earned the top spot for the best rotisserie chicken, edging out Costco in a blind taste test of chickens from 10 grocery chains, warehouse clubs, and big-box retailers.

Consumer Reports' tasters praised Sam's Club's Member's Mark Seasoned Rotisserie Chicken for its juicy meat, deep roasted flavor, and paprika seasoning with hints of onion and garlic.

Costco's Kirkland Signature chicken finished second, earning high marks for its size and seasoning, although reviewers noted that the saltiness varied between samples.

The rest of the top group included Stop & Shop, Walmart, Wegmans, and Whole Foods. Meanwhile, BJ's, Hannaford, ShopRite, and The Fresh Market were considered better choices for recipes like soups, casseroles, and chicken salad rather than serving on their own.

The rankings weren't just about taste

Consumer Reports didn't simply hold a blind taste test.

Researchers purchased between 10 and 13 chickens from multiple locations for each retailer. They weighed every bird, compared sodium levels with the nutrition label, evaluated flavor and texture, and even tested both the meat and packaging for PFAS, often called "forever chemicals."

The good news? None of the chickens or their packaging tested positive for PFAS.

Five ways to get the best rotisserie chicken

• Buy it fresh. Chickens are usually juiciest during the lunch and dinner rush when stores are constantly putting out fresh batches.

• Compare price per pound. A $5 chicken isn't always the cheapest, especially if it's significantly smaller than a competitor's bird.

• Check the seasoning. Some stores use heavier seasoning or inject additional flavoring, while others keep things simple. Choose the style your family prefers.

• Turn leftovers into another meal. One rotisserie chicken can become tacos, enchiladas, soup, pasta, salads, or sandwiches, stretching your grocery budget.

• Freeze what you won't eat. Shred leftover chicken into meal-sized portions and freeze it for quick weeknight dinners.

The bottom line

Costco remains one of the best values in grocery stores, especially given its long-standing $4.99 price. But if you already have a Sam's Club membership, Consumer Reports suggests its rotisserie chicken is worth picking up on your next shopping trip.

More importantly, the rankings show that some of the best grocery bargains aren't always found where shoppers expect. Always try to compare quality along with price so you can get the most bang for your buck.

But with renewed hostilities with Iran, the relief could be temporary

By Mark Huffman of ConsumerAffairs

• Consumer prices fell 0.4% in June, the biggest monthly decline since the early months of the pandemic, as gasoline prices posted their steepest drop in more than six years.

• Annual inflation slowed to 3.5% from 4.2% in May, while core inflation, which excludes food and energy, was unchanged for the month and eased to 2.6% year over year.

• Consumers received relief at the pump, but food and housing costs continued to edge higher, showing that inflation pressures remain uneven across the economy.

It may not feel like it, but consumer prices declined sharply in June. Sharply lower gasoline prices more than offset continued increases in food and shelter costs, providing the biggest one-month drop in inflation since the early months of the COVID-19 pandemic.

The Consumer Price Index (CPI) fell 0.4% on a seasonally adjusted basis in June after rising 0.5% in May, according to the Bureau of Labor Statistics. It was the largest monthly decline since April 2020, when widespread economic shutdowns pushed prices lower. Over the last 12 months, the CPI increased 3.5%, down from the 4.2% annual inflation rate recorded in May.

The primary reason for the decline was energy. The energy index fell 5.7% during the month, with gasoline prices plunging 9.7%. The drop in energy costs more than offset increases in food and shelter, making energy the largest contributor to the overall decline in consumer prices.

Core inflation, which excludes the volatile food and energy categories and is closely watched by the Federal Reserve, was unchanged in June after increasing 0.2% in May. On an annual basis, core inflation slowed to 2.6% from 2.9% the previous month, suggesting underlying price pressures continued to moderate.

Food prices still rising

Food prices continued to rise, though at a modest pace. The overall food index increased 0.2% in June, matching May's gain. Grocery prices also rose 0.2%, led by a 4.3% jump in egg prices and a 1.2% increase in dairy products. Meat, poultry, fish, and eggs rose 0.6%, while cereals and bakery products increased 0.3%.

Some grocery categories became less expensive. Nonalcoholic beverages fell 1.5% as coffee prices dropped 2.0%, and fruit and vegetable prices declined 0.2% during the month. Restaurant prices continued to climb, with the food-away-from-home index rising 0.2%.

Shelter costs, one of the biggest contributors to inflation over the past several years, rose just 0.1% in June the smallest monthly increase since January 2021. Owners' equivalent rent increased 0.2%, while rent rose 0.1%. Lodging away from home fell 2.3%.

Declines in other sectors

Several other categories also posted price declines. Motor vehicle insurance dropped 2.0% after falling 1.7% in May. Communication services fell 1.5%, apparel declined 0.6%, and used car and truck prices slipped 0.2%. Medical care prices edged down 0.1%, reflecting declines in physician services and prescription drug costs.

Despite June's decline, prices remain higher than a year ago. Energy costs are still up 15.7% over the past 12 months, including a 26.7% increase in gasoline prices. Food prices have risen 3.0% over the past year, while shelter costs are up 3.3%.

The good old days were not that long ago

By Mark Huffman of ConsumerAffairs

• Twenty-five years ago, economists worried that prices might stop rising altogether. Today, consumers face housing, healthcare, insurance, and grocery bills that have climbed much faster than wages in many cases.

• The change wasn't caused by a single event. A series of structural shifts including the pandemic, supply chain disruptions, labor shortages, housing shortages, and government stimulus combined to end an era of unusually low inflation.

• The economy has shifted. Many economists say the U.S. economy has moved from a world where globalization kept prices down to one where supply constraints and geopolitical tensions make inflation more persistent.

Twenty-five years ago, the Federal Reserve had a problem that seems almost unimaginable today: it was worried prices weren't rising enough.

Following the technology boom and into the early 2000s, inflation remained remarkably subdued despite a strong economy. After the 2008 financial crisis, those concerns intensified as policymakers feared deflation a broad decline in prices that can discourage spending, reduce business investment, and make recessions worse. The Fed kept interest rates near zero for years and repeatedly struggled to push inflation up to its 2% target.

Fast forward to today, and Americans are living in a very different economic landscape. While inflation has slowed from its 2022 peak, the cumulative increase in prices since the pandemic has permanently raised the cost of living, leaving many households wondering what changed.

Economists point to several major shifts.

Globalization stopped holding prices down

One of the biggest differences between the early 2000s and today is globalization.

For decades, American companies increasingly sourced products from low-cost countries, particularly China. Advances in technology, global shipping, and international trade created fierce competition that kept prices low for everything from electronics to clothing.

Researchers at the Bank for International Settlements and the International Monetary Fund have found that globalization, lower import prices, and increased competition were important reasons inflation remained unusually subdued during the 1990s and early 2000s.

That trend has weakened significantly.

Companies have begun diversifying supply chains, governments have imposed tariffs on some imports, and geopolitical tensions have encouraged businesses to manufacture closer to home. Those changes improve supply chain resilience but often come with higher costs.

The pandemic changed everything

COVID-19 delivered perhaps the largest inflation shock in decades.

Factories shut down, shipping networks became clogged, semiconductor shortages slowed production, and consumers suddenly shifted spending from services to physical goods. At the same time, unprecedented government stimulus and historically low interest rates left consumers with significant purchasing power just as supplies became scarce.

The result was too much demand chasing too few goods.

The IMF says the inflation surge of 2021 and 2022 was driven by a combination of exceptionally tight labor markets, large relative price shocks especially energy and automobiles and strong consumer demand.

Housing became much more expensive

Housing now plays a much larger role in household budgets than it did two decades ago.

Years of under-building following the Great Recession left the United States with millions of fewer homes than needed. When mortgage rates fell to record lows during the pandemic, demand surged while supply remained constrained.

Home prices soared, rents climbed, and shelter costs became one of the biggest contributors to overall inflation.

Unlike gasoline prices, housing costs tend to adjust slowly, meaning they can keep inflation elevated long after other prices stabilize.

Labor shortages increased wage pressure

The labor market has also changed. Baby Boomers have retired in large numbers, immigration slowed during and after the pandemic, and many workers reassessed career choices.

Employers responded by raising wages to attract and retain employees. Higher wages benefit workers but also increase costs for labor-intensive industries such as restaurants, healthcare, and hospitality, where businesses often pass at least part of those costs on to consumers.

Americans also spend more on services than they once did. Healthcare, insurance, education, childcare, and housing generally experience faster price growth than manufactured goods because they rely heavily on labor and are harder to automate or import.

Even as prices for televisions and computers have remained relatively stable or even fallen the growing share of spending devoted to services has pushed overall household expenses higher.

Energy and geopolitics have become recurring inflation risks

Oil shocks once seemed like relics of the 1970s. Today, geopolitical conflicts, trade disputes, and shipping disruptions can quickly ripple through global energy markets. Higher fuel costs raise transportation expenses, which eventually feed into the prices consumers pay for food, retail goods, and travel.

The Bank for International Settlements notes that once inflation becomes widespread rather than confined to a few sectors, it can become self-reinforcing as businesses and workers begin expecting higher prices and wages.

The era of 'too little inflation' is over for now

The irony is that the Federal Reserve spent much of the 2000s and 2010s trying unsuccessfully to generate more inflation. Today, the challenge is the opposite: bringing inflation back toward 2% without triggering a recession.

Even if inflation returns to the Fed's target, consumers should not expect prices to return to where they were before the pandemic. Inflation measures the rate at which prices increase, not whether prices fall.

For millions of Americans, that means the higher cost of groceries, housing, insurance, and healthcare is likely to remain a defining feature of the post-pandemic economy even if inflation itself eventually returns to normal.

Foreclosures are selling for 27% below market values

By Mark Huffman of ConsumerAffairs

• Foreclosed homes are selling at steep discounts, with the typical property fetching 27.2% less than its estimated market value, according to Realtor.com.

• The savings can come with added risks, including costly repairs, title issues, and lengthy buying processes that require careful due diligence.

• Foreclosure listings have climbed to their highest level in six years, giving bargain hunters more options but also more competition.

During the financial crisis and resulting housing market crash, many people were able to buy foreclosed homes at rock-bottom prices. That opportunity may be reappearing, though not nearly to the same scale as the 2009-2010 period.

A new Realtor.com report shows that the median foreclosed home sold for 27.2% below its estimated market value, making these properties among the biggest discounts available in today's housing market. At the same time, foreclosure listings have risen to their highest level in six years, accounting for 1.3% of all homes for sale in April 2026.

Despite the increase, housing economists stress that the market is not showing signs of a foreclosure crisis.

"Foreclosures are normalizing, not accelerating into a crisis," said Joel Berner, senior economist at Realtor.com.

The unusually low foreclosure rates seen during the pandemic were driven by foreclosure moratoriums, mortgage forbearance programs, and rapidly rising home values that gave many homeowners enough equity to avoid losing their homes. As those temporary factors have faded, foreclosure activity has gradually returned to more typical levels.

Bargains attract plenty of attention

The discounts have not gone unnoticed.

According to the report, foreclosure listings received 26.5% more online views than the average home listing during the first half of 2026, even though they remained on the market about 11 days longer than conventional listings.

The longer selling time reflects the unique challenges associated with distressed properties, which often require additional inspections, financing approvals, or legal steps before a sale can close.

What buyers should look out for

While a foreclosure may appear to be a bargain, experts caution that buyers should carefully evaluate the true cost of the purchase.

Among the most important considerations:

• Property condition: Many foreclosed homes have been vacant for months or even years. Deferred maintenance, vandalism, water damage, and outdated systems can result in expensive repairs.

• Inspection limitations: Some lenders sell foreclosed properties "as is," and buyers may have limited opportunities to negotiate repairs.

• Title issues: Unpaid taxes, liens, or legal claims can sometimes complicate ownership, making a thorough title search and title insurance essential.

• Financing challenges: Homes needing substantial repairs may not qualify for conventional mortgages, requiring renovation loans or cash purchases.

• Competition: Because the discounts are attractive, desirable foreclosures can still generate multiple offers.

Real estate professionals generally recommend buyers build repair costs into their budget, hire experienced inspectors whenever possible, and work with an agent familiar with foreclosure transactions.

More opportunities in some markets

The report found that foreclosure activity varies significantly across the country, with some metropolitan areas seeing much larger shares of distressed listings than others. Buyers willing to search in markets with higher foreclosure rates may find more opportunities, although local economic conditions and neighborhood trends remain important factors when evaluating any purchase.

For buyers willing to do their homework, a foreclosure can provide an opportunity to purchase a home below market value. But the lowest purchase price does not always translate into the lowest overall cost, making careful research and due diligence essential before signing a contract.

GLP-1 weight-loss drugs had the highest denial rate

By Mark Huffman of ConsumerAffairs

• Insurance denials for first-time prescriptions of brand-name drugs with no generic alternative jumped 67% between 2018 and 2024, according to a new study published in JAMA.

• Nearly half of patients whose prescriptions were initially denied never filled either the prescribed medication or a similar drug within 90 days, raising concerns about delayed or foregone treatment.

• Researchers say growing use of prior authorization, step therapy, and formulary exclusions are the primary drivers of the increase, reflecting insurers' efforts to control soaring prescription drug costs.

Americans prescribed brand-name medications without generic alternatives are increasingly running into insurance roadblocks at the pharmacy counter. A newly published study found that denial rates rose dramatically between 2018 and 2024.

The study, led by researchers at the Johns Hopkins Bloomberg School of Public Health and the American Enterprise Institute and published in the Journal of the American Medical Association (JAMA), analyzed more than two million first-time prescription fill attempts across commercial insurance, Medicare, Medicaid, and Affordable Care Act marketplace plans.

Researchers found that insurers rejected 40.7% of initial attempts to fill brand-name prescriptions in 2024, up from 24.3% in 2018 a 67% increase.

The consequences often extended beyond a temporary inconvenience. Among patients whose prescriptions were initially denied, 48.4% did not fill either the prescribed medication or another drug in the same therapeutic class within 90 days. Those who ultimately obtained treatment waited an average of 12 days after the initial rejection.

"We found that insurance restrictions are increasingly shaping whether and when patients receive medications their clinicians prescribe," lead author Joseph Levy, an assistant professor in the Bloomberg School's Department of Health Policy and Management, said in a statement.

"While these policies may help control drug spending, they can also create meaningful barriers to timely treatment and place growing administrative burdens on patients, pharmacists, and clinicians."

Prior authorization a growing hurdle

About one-third of all initial prescription attempts were rejected because of formulary exclusions or utilization management policies, such as prior authorization requirements or step therapy, which require patients to try less expensive medications before insurers will cover the prescribed drug.

The researchers concluded that the growing use of these utilization management tools accounted for most of the increase in denials during the study period. Commercial insurance plans and Medicaid managed care plans experienced some of the largest increases in these restrictions.

Denial rates also varied significantly by drug category. Medications in the incretin class including GLP-1 weight-loss drugs had the highest rejection rate at 85%, while oral anticoagulants had one of the lowest rates at 6.7%.

Marketplace plans and Medicaid managed care plans posted the highest overall denial rates, with nearly half of all first-time prescription attempts rejected. Medicare plans generally had lower rejection rates.

Balancing access and costs

The study comes as insurers face mounting pressure to manage spending on expensive brand-name drugs, particularly specialty medications and newer therapies that can cost thousands of dollars per month.

According to the Association for Accessible Medicines, cited by the researchers, brand-name drugs accounted for only about 10% of prescriptions filled in 2024 but represented 88% of total prescription drug spending about $700 billion. By contrast, generic drugs and biosimilars made up roughly 90% of prescriptions while accounting for only 12% of spending.

The researchers acknowledged that utilization management can help insurers negotiate lower prices and encourage cost-effective prescribing. However, they suggested that simplifying and standardizing prior authorization requirements, along with providing clinicians with real-time information about insurance coverage, could reduce unnecessary delays in treatment while preserving insurers' ability to manage costs.