Economist encouraged by slowing inflation numbers
BIRMINGHAM, Ala. (WBRC) - Some good news for your wallet.
Inflation data released on August 10 shows price increases slowed in July.
Falling gas prices are helping our bank accounts and inflation numbers, but overall prices of other goods and services slowed only modestly after reaching a 40-year high in June.
The Bureau of Labor and Statistics said the Consumer Price Index rose 8.5% in July compared to last year.
That’s down from 9.1% in June.
The latest report on inflation shows prices were unchanged from June to July—the first time that’s happened in more than two years.
Gasoline prices fell 7.7% in July, so you’re paying significantly less at the pump, but economists said you’re paying more for food.
“All food is up 1.1%. Food at home, think mainly groceries, is up 1.3%. Food away from home is 1.7% and that’s month-by-month. So, we’re talking about the change between June and July. Still, year-over-year, so July 2021 versus July 2022, we still see a pretty big jump there. Those are double digit jumps in prices,” said Assistant Professor of Economics at UAB, Dr. Ben Meadows.
Economists said they’re encouraged by the slowing inflation numbers, but also said the impact will depend on the person.
For instance, if you’re someone who uses a lot of gas, you’ll feel more relief than someone who doesn’t.
And if you’re a single person, or you have a smaller family, you may not be as affected by higher food prices than larger families.
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