Economics in the News – Oct. 12-18, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o The record heat from summer 2026 meant that costs for air conditioning were higher for American families. Faced with the higher costs, roughly one in six households are unable to pay, as federal data shows many are falling behind on utility bills. With federal restrictions preventing utility companies from turning off the power in the most dangerous of conditions, disconnections tend to spike in cooler months such as October.
Power companies are faced with their own rising costs, for fuel and equipment, rising demands of extreme weather and facilities such as data centers. In some locations where data centers are increasingly being built, some of the costs were being added to ordinary customer bills. [The New York Times]
o Americans are increasingly turning away from cereal for healthier breakfast alternatives. Last year, American consumers bought 13 percent less cereal than in 2021, according to Nielson IQ. And it’s not just total sales declining; dollar sales are in decline as well. More Americans are instead opting for a breakfast bar, drinkable yogurt or even skipping on breakfast altogether.
The nation’s movement for less-processed foods, along with younger generations lack of emotional attachment is having an impact as well. Cereal executives are seeking to return their products back to their roots, with nostalgic labels and higher protein and vitamin content. They are also increasingly turning to granola. The four biggest cereal companies own 80 percent of market share, and they are feeling the pressure from house-brands such as Aldi’s private-label brand with added protein and fiber. Large companies are trying to sway adults, by marketing that their products are deserts with benefits, instead of just for breakfast. [The New York Times]
o Experts are warning that flying home for the holidays will be the highest cost in a decade. Airfare prices for Thanksgiving are up 31 percent from last year, while prices to fly over Christmas are 23 percent higher.
With higher costs due to rising energy costs stemming from the US war in Iran, carriers are having to find ways to boost revenue. Executives have said that so far during the war, they have pushed prices higher without hurting demand. According to data from Argus, the average price for jet fuel is $4.50 per gallon, an increase of 91 percent since February. A round-trip flight with the return flight on the Sunday following Thanksgiving is the most expensive date to fly this holiday season, followed by the Saturday after Thanksgiving. Airlines, such as Delta, are relying on households that have benefited by soaring stock prices and income increases to be willing to absorb the extra fare. [The Wall Street Journal]
o Average interest rates for a 30-year fixed rate mortgage have climbed to 7.4 percent. That comes on the heels of an extended period where interest rates for houses were roughly five percent. They even were as low as three percent during the COVID-19 pandemic. But interest rates from the 1970s through the 1990s were consistently well above the seven percent mark.
However, a seven percent rate when older generations were buying homes and seven percent rates in today’s market are different. Median home prices used to cost three times the median income or less in 75 of the top 100 housing markets in the US in 1990. In today’s climate, only three of the top 100 markets cost three times the median income or less. Average home prices skyrocketed through the 2000s when interest rates were low. And with higher rates, the prices of homes haven’t come down. Those with sub-3 percent rates are opting to hold onto their house as well. In addition, builders are hesitant to build with buyers balking at higher prices, resulting in fewer houses on the market. [The Washington Post]
o The WNBA continues to blossom. League revenue surpassed where the NBA was at the same point of its existence, even when adjusted for inflation. The league signed a new media rights deal to bring in $281 million annually to make its games more accessible for viewers at home. The season will be expanded from 44 games to 50 games for the 2027 season, as the league plans to have 18 teams by 2030.
The demands to own a WNBA team are rivaling their male counterparts, requiring top-tier facilities, training rooms, charter flights, makeup rooms and more. The success of the league has brought financial gains to the sports top players. Under the new CBA agreement, the maximum salary a player can earn in 2026 is $1.4 million, compared to $250,000 in 2025. The minimum salary has a drastic increase as well, with a $270,000 minimum salary, compared to $66,000 in 2025. [Bloomberg]
