(AURN News) — Prices are still going up, and families are still feeling it.
The Consumer Price Index increased 0.1% in July, according to the Labor Department’s Bureau of Labor Statistics. Over the past year, prices are up 3.4%.
That means Americans are still paying more for the basics even as inflation slows down.
The CPI is one of the key inflation measures the Federal Reserve watches when deciding what to do with interest rates. But for families, it is not just a data point. It reflects the cost of food, rent, clothes, utilities, transportation and everything else needed to get through the month.
Inflation also remains above the Fed’s 2% target, which means the central bank is still trying to figure out how to bring prices under control without slowing the economy too much.
The July report showed prices moving in different directions. Overall food prices edged higher, while grocery prices slipped slightly. Energy prices fell from June but remain much higher than a year ago.
Shelter costs continued to drive inflation. Prices for clothing and used cars also increased in July.
And that is the problem for working families. Slower inflation does not mean prices are going back down. It means prices are rising at a slower pace.
So while economists may point to signs that inflation is cooling, many families are still dealing with the same reality: their paychecks do not stretch as far as they used to.
Rent is still high. Groceries are still expensive. Utility bills still come due. Transportation still costs money.
For the Fed, the CPI is an inflation report. For families, it is the cost of living.
Click play to listen to the AURN News report from Jamie Jackson:
