Key sectors see price drops since 2022 inflation peak – EPI
2024.07.25 17:00
Investing.com -The latest economic indicators point to a moderation in consumer price inflation since its peak in June 2022.
Analysts from the Economic Policy Institute (EPI) noted on Thursday that prices for several key goods have actually declined over the past few years, bringing some relief to consumers.
According to underlying commodity data from the Bureau of Labor Statistics, major improvements have been observed in energy prices. Families preparing for winter can expect to pay 36% less for heating fuel compared to mid-2022. Similarly, gasoline prices have declined by 29%, and heating and cooking gas is 15% cheaper.
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In the realm of household goods, prices for washers and dryers are currently 10% lower than they were two years ago. Grocery shopping has also become slightly more affordable, with apples now costing 8% less and both milk and bacon seeing a 3% price reduction. Tomatoes have experienced a more modest decrease, with prices falling by 1%. Additionally, clothing prices for boys’ and girls’ shoes are down by 2%.
While the overall (CPI) growth remains above the Federal Reserve’s 2% target for inflation, the trend indicates a downward shift. Since June 2022, inflation has decelerated by nearly six percentage points. Notably, prices for several household staples, such as chicken, bananas, eggs, and car tires, are increasing at rates that are slower than the Fed’s inflation target.
Perhaps most encouraging is the positive outlook for wages. Over the past two years, wages have grown 1.2 percentage points faster than prices. This accelerated wage growth, combined with the declining prices in key sectors, is beneficial for consumers’ purchasing power. Looking ahead, there is hope that this favorable trend in wages and prices will persist, providing continued economic relief.
