July 12, 2023
Inflation has just hit its lowest number since March of 2021. But in two of the categories that matter to your wallet every single day – it’s still pretty high.
Overall the consumer price index report for June found inflation was just 3% higher than it was in June of 2022. Economic experts say this is a sign that it is possible the federal reserve will actually achieve a that soft landing. Basically – they can successfully bring down inflation without triggering a recession.
This graph gives you a really good visual of what the inflation looks like now. Here we are today at 3%. See how far inflation has dropped since the most recent peak was June of 2022 when inflation was 9.1%. That’s 12 straight months of decreases in inflation.
So what categories are down and which ones are up?
Let’s start with the good news of what’s down year over year.
Mainly it’s energy. Gasoline for your car down 26.5%, utilities like natural gas for your home, down 18.5%
Used cars and trucks (-5.2%), airfare (-18.9%), televisions (-9.9%), and health insurance (-24.9%).
But – the categories that arguably impact your wallet every single day – food and shelter are both up year over year.
Shelter is up almost 8% (+7.8%) and food overall is up almost 6-% (+5.7%).
So the big question now – will the Federal Reserve raise interest rates again in two weeks. As I just reported, the inflation rate is now at 3%. The Fed’s target inflation rate is 2%. So how will they get it down one more percent? Raise interest rates slightly – again? Or just ride it out this month and see what happens?
Read the full Consumer Price Index report here.
