US price and wage increases slow further in the latest signs of cooling inflation (Photo: Atlanta News First)
Inflation in US continually declining as shown in prices and wages
According to an article published by HAVASU News, consumer prices increased in June at their slowest rate in more than two years and that wage growth slowed down last quarter were two signs of the pressures of inflation in US are gradually receding.
Together, the data offered the most recent indications that the Federal Reserve’s efforts to control inflation in US may be successful in preventing a recession, or “soft landing,” as it is sometimes referred to.
A carefully watched price index by the Fed increased merely 3% in June compared to the same month last year. Even while it decreased from a 3.8% annual gain in May, inflation in US was still above the Fed’s 2% target.
Prices increased by 0.2% from May to June every month, somewhat more than the 0.1% increase.
The steep deceleration in inflation in US last month was mostly caused by dropping gas prices and moderate price rises for groceries.
According to a published article from AP News, the cost of new and used automobiles, furniture, and appliances also decreased in June as a result of supply networks’ virtually complete recovery from post-pandemic disruptions. This signifies that inflation in US is slowly declining.
However, the price of these services kept rising. The average cost of movie tickets increased 0.5% from May to June and is now 6.2% more than it was a year ago.
US pricing and wage growth slows down much more in the most recent indications of deflation (Photo: Yahoo News)
Veterinary services are 10.5% more expensive now than they were a year ago, up 0.5% last month. Additionally, restaurant meal costs rose 0.4% in June and are now 7.1% higher than they were a year ago.
Consumers are growing more upbeat about the economy as a result of the continuously declining inflation in US, which could encourage them to continue spending and support growth.
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