07/12/2023

Inflation Drops to Lowest Levels Since March 2021

Wages are now rising faster than prices

A year after inflation soared to the highest level in four decades, price increases are returning closer to normal levels, with families and businesses feeling the difference as wages rise faster than prices and policymakers debate how much more to slow the economy.

Government data released Wednesday showed a notable drop in inflation: Prices rose 3 percent in June compared with the year before, and 0.2 percent compared with May, the smallest 12-month increase since March 2021. That marked progress from the last inflation report, when prices rose 4 percent compared with the previous year.

There is a ways to go, especially on major categories such as rent. But encouraging signs were scattered throughout the Bureau of Labor Statistics report. Goods prices, from used cars to meats, saw declines compared to the month before. Categories that bulged over the past year, such as airfares and hotels, are also cooling off as demand settles back to normal.

Please select this link to read the complete article from The Washington Post.