Americans plagued by rising prices the past three years got another promising sign on Wednesday that inflation is sustainably easing.
The Consumer Price Index (CPI), a broad measure of the price of everyday goods, including groceries, gasoline, and rent, rose 0.2% in July over the previous month, in line with economists’ expectations. Prices rose 2.9% compared to a year ago — the lowest annual reading since spring 2021.
Here’s what the Bureau of Labor Statistics’ latest inflation numbers mean for your household:
Price increases slow on cell phones, TVs, used cars, and more
The sting of surging prices should feel like less of a bite on several common purchases. Of note:
The price of used cars, notoriously steep during the pandemic, slowed 2.3% in July, following a 1.5% decrease in June. The index for used cars is down nearly 11% year over year. Car and truck rentals were down more than 6% compared to 2023.
Cell phones were down more than 8% year over year. TVs: almost 6%. Smart home devices declined 2.4%, and the index for airfares fell 2.6% as summer travel wraps up.
Auto insurance keeps surging while gas prices ease up
Car insurance costs haven’t been this bad in 47 years.
The price of auto insurance was up 18.6% since last July, a pain felt nationwide. The monthly index ticked up 1.2%.
Three consecutive years of underwriting losses mean insurers have paid out more in claims and expenses than they took in through the premiums we pay — leading to the steep hikes felt…
