Sharply lower prices for gas and cheaper used cars slowed U.S. inflation in August for a second straight month, though many other items rose in price, indicating that inflation remains a heavy burden for American households. us inflation kprc2 us
Nationally, the average cost of a gallon of gas has dropped to $3.71, down from just above $5 in mid-June.
“Companies are still putting through large price increases for those goods, and that’s problematic," she said. It means the Fed will likely have to work harder to quash consumer spending through higher rates. Yet Americans are still desperate for cars, Buckberg said, which has allowed dealers to keep their markups much higher than pre-pandemic levels.Ongoing price increases for raw materials — and labor — have left many small businesses struggling. Some are raising their own prices to keep up,Meaghan Thomas, co-owner of Pinch Spice Market in Louisville, Kentucky, an online spice seller, has avoided raising prices for the past two years but worries that that can’t last if inflation worsens.
“We can hang on for a little bit if all these other companies can stop raising their prices,” Thomas said.