Reported 8 months ago
Wall Street and consumers are pleased with the latest inflation report, showing prices increased less than expected from April to May. While this may not immediately relieve family budget pressures, the positive trend is clear: inflation in goods is finally returning to normal levels after a spike three years ago due to COVID-related factors and stimulus spending. The annual inflation rate for goods is now at 0.1%, with the cost of goods rising by 14% in the last three years, aligning closely with earnings growth. Commodity prices are expected to continue moderating, evidenced by drops in gasoline prices. Retailers are also cutting prices on various items. While overall inflation has improved to 3.3%, services inflation remains high at 5.2%, led by rising rental costs and increased prices for restaurant meals and auto insurance.
Source: YAHOO