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Good news! Overall inflation in the United States has been slowing down. From January through July, the headline Consumer Price Index (CPI) increased at a 1.9% annual rate. That means prices are still going up, but not as fast as before.
When we look closer, we see some interesting changes. Prices for core goods—things like clothing, electronics, and other products that don’t include food and energy—have gone up a little. But at the same time, prices for services, like healthcare, entertainment, and transportation, have gone down. This balance has helped keep overall inflation low.
Some people say that rising prices for goods are caused by trade policies. But when we compare prices internationally, we see that:
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Core goods prices have gone up in countries all over the world over the past year.
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Even with the increase, core goods inflation in the U.S. is still very low—1.2% over the past 12 months and 1.1% since January.
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Compared to other countries, U.S. goods prices have actually increased less than expected.
In other words, even though prices for some items are rising, the U.S. is doing well compared to the rest of the world. Americans are seeing slower overall price growth, which is good news for families trying to make their money stretch further.Good news! Overall inflation in the United States has been slowing down. From January through July, the headline Consumer Price Index (CPI) increased at a 1.9% annual rate. That means prices are still going up, but not as fast as before.
When we look closer, we see some interesting changes. Prices for core goods—things like clothing, electronics, and other products that don’t include food and energy—have gone up a little.
But at the same time, prices for services, like healthcare, entertainment, and transportation, have gone down. This balance has helped keep overall inflation low.
Some people say that rising prices for goods are caused by trade policies. But when we compare prices internationally, we see that:
-
Core goods prices have gone up in countries all over the world over the past year.
-
Even with the increase, core goods inflation in the U.S. is still very low—1.2% over the past 12 months and 1.1% since January.
-
Compared to other countries, U.S. goods prices have actually increased less than expected.
In other words, even though prices for some items are rising, the U.S. is doing well compared to the rest of the world. Americans are seeing slower overall price growth, which is good news for families trying to make their money stretch further.
