Inflation increases have Bay Area residents pinching pennies

Inflation remains a stubborn reality for millions of Americans. The Labor Department says the Consumer Price Index rose 3.7% in September, the biggest increase in five months. KTVU's Tori Gaines, live for us tonight in San Jose, where those numbers, Tori, I mean, they are translating into very difficult choices for families out there. Yeah, absolutely. The numbers are basically saying what many of us are already feeling in our wallets, and that's that everyday essentials, their prices, remain pretty steep. Now that's playing out in real time right here on the corner of West San Carlos Street where you can see high grocery bills at Safeway, higher prices at McDonald's, and car lots across the way with high prices and interest rates that are keeping buyers at bay. Fresh Consumer Price Index numbers released today confirm inflation edging up 3.7% nationwide. And according to the latest 2026 Silicon Valley poll, Bay Area residents are feeling that pressure in every corner of their budgets. From daily buys like groceries to big-ticket purchases like cars, Bay Area residents can see their dollar simply doesn't stretch as far as it used to. More than half of those polled say they've cut back on groceries. I find myself having to pick and choose what matters most, and most of the time I'm behind on bills because we have to eat. Deja Sullivan says she spends about $300 on groceries every two weeks to feed her family of three. But for the past year, her biggest concern has been one cost, baby formula. A month? I would say around $600 to $700. And it's not just families. Today's CPI report shows dining out and fast food prices are up 3.5% over the last year. And even high school students we spoke to are feeling that pinch on quick meals. The kids' french fries, their boxes shrink a lot. Other menu favorites are costing a lot more. McDonald's, like, there used to be a $1 McChicken, now it's like $3, like triple. And with today's data showing overall grocery costs up again year over year, a few daily staples are hitting extra hard. I feel like I've seen milk go up in price a lot, just because we have to buy it a lot, just because everybody at my house, we love cereal. He's not wrong. We took a close look at the price of milk. One organic brand at this Safeway was $9.99 per gallon, or 30 to 40 percent higher than the same gallon was in 2021, according to USDA data. And as for cereal, it's $8.49 for the member price, but with the digital coupon, it goes down to $5.99 each. But $5.99 is still quite a lot for a box of cereal. And while there doesn't seem to be an end to the pain in the purse, Sullivan says community is what helps her navigate it. And I find comfort in knowing, for the most part, it's not anything I'm doing wrong. Like I said, I have a job. I have a career path. There's nothing I can really do right now but continue to advocate and just be hopeful. And while experts say inflation relief comes slowly, many families are having to rely on local food banks, which say they're seeing record numbers, excuse me, as those families try to stretch their monthly budgets. Mike? A lot of difficult day-to-day decisions for many people out there in the Bay Area and beyond. Tori Gaines, live tonight in San Jose. Tori, thank you for that.