Recent economic indicators suggest that inflation in the United States is finally easing after a wild spike in June 2022. Experts at the Economic Policy Institute are pleased to report that prices for many goods have fallen.
According to the US Bureau of Labor Statistics, the energy market is experiencing some relief, with heating fuel prices dropping by a substantial 36%, thus easing fears of high winter bills. Gasoline prices have followed suit, falling by 29%, while cooking and heating gas is down 15%.
As for household goods, washing machines and dryers are now 10% cheaper. Grocery shopping has also become more affordable. Prices for apples have fallen by 8%, milk and bacon - by 3%, and tomatoes - by 1%. Even children's clothing and footwear are now 2% cheaper.
Although the overall consumer price index is still above the Federal Reserve’s 2% target, the trend clearly signals a downward shift. Since June 2022, the inflation rate has decreased by a significant 6 percentage points. Specific items such as chicken, bananas, eggs, and car tires are rising at a slower pace than the Fed would prefer.
Last but not least, wages have grown faster than prices by 1.2 percentage points over the past two years. This suggests a potentially bright economic future where wages and prices may finally find harmony. There is a likelihood that this positive trend will persist.
