ALBAWABA - The consumer price index, which is a broad-based assessment of prices for goods and services, climbed by 0.2% for the month, bringing the yearly average of inflation to 2.9% for the same period of time. This slight drop from June’s 3 percent marks the lowest annual inflation rate since 2021.
A report that was released by the Department of Labor on Wednesday indicated that consumer prices had remained relatively stable for the third consecutive month, in addition to a little increase in producer prices for the previous month, which further suggested that inflation is securely back on a downward trajectory.
In spite of the fact that inflation is still more than the 2 percent that was considered typical before the coronavirus pandemic, it is far less than the 9.1 percent record that occurred in 2022.
With food and energy excluded, the core Consumer Price Index (CPI) came in at a monthly rise of 0.2% and an annual rate of 3.2%, which sets in line with analyst forecasts.
Ahead of the U.S. presidential election on November 5, Americans may continue to be concerned about rising rent and food costs, according to Reuters as prices at grocery stores increased by 0.1% for the second consecutive month, while fuel costs remained constant after declining for two months in a row.
Almost 90% of the CPI increase was driven by a 0.4% increase in housing costs. Rent-related shelter expenses were up 0.2% in June, while food costs increased by 0.2%, mirroring June's increase.
The cost of automobiles continued to drop, with second-hand automobiles down 2.3% for the month and 10.9% from a year earlier, and new vehicles down 0.2%. Nonetheless, the cost of vehicle insurance increased by 1.2% more, or 18.6%, over the course of a year.
