A couple of key numbers on the economy will come out this week…
Today’s Producer Price Index shows inflation on the wholesale prices manufacturers receive for their products slowed in July.
Analysts expect to see the same slowing in tomorrow’s Consumer Price Index, which measures the prices consumers pay for retail goods.
However, even as inflation slows, some Americans aren’t feeling any relief.
“The rent is crazy. Food is crazy. Like I just spent $250 on like a week and a half worth of groceries,” Chereese Liddell said.
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While shoppers are feeling the pinch, analysts expect Wednesday’s new Consumer Price Index numbers to show inflation down in July compared to June. Year-over-year, inflation is forecast to be 3.2% — the lowest since April of 2021, but some consumers are disheartened.
“I don’t know that prices will ever go back to the prices they were before,” Tomira White said.
The price of some essentials, especially compared to what they were two years ago, have many Americans still feeling squeezed.
Food is up just over 8% over the last two years. Electricity is up nearly 10% from June of 2022. Rent and what homeowners would pay to rent their own house is up 13.3%. And the cost of maintaining a vehicle is up nearly 20% from two years ago.
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Wages have increased but people in the lowest economic levels see housing and groceries eating up a larger portion of their total budget.
“When the typical everyday American is sitting here struggling to afford rent, struggling to buy groceries, struggling to pay for gas — the economy is more than just the stock market. The economy is everyday Americans like you and me,” said Thomas Stockwell, an assistant professor of economics at the University of Tampa.
