NORFOLK, Va. — Inflation has cooled down, according to Thursday’s Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
“Overall prices relative to what they were a month ago are actually going down. They went down about 0.1 percent in June,” said Kirabo Jackson, the Senior Economic Advisor to President Biden.
Overall, the index rose 3.0% in June on a yearly basis, a slight increase from 3.3% in May, according to the U.S. Bureau of Labor Statistics.
Indexes for gasoline, energy, airline fares, used vehicles, energy, and communication decreased in June, while prices rose for food, shelter, motor insurance, furniture, medical care, and personal care.
On Thursday, President Biden posted his excitement about the CPI on the social media site X, formerly known as Twitter, but he said there is still work to be done.
While economists are celebrating, some Virginians have mixed views on the economy.
“I’m going to take the words of someone wise I heard. I think it’s trash,” said Norfolk resident Isaiah Moore.
“I’m still making good tips and good money, but the cost of living is so high that it [doesn’t] even matter,” said Norfolk resident Amanda Miran.
Tidewater Community College Professor Emeritus of Business Administration Peter Shaw says consumer spending makes up about 70% of the U.S. Economy, and the state of the economy lies in the hands of consumers.
“If consumers were to understand clearly that they control 70 percent of spending in the economy and they focused on separating their wants from their needs and then reducing their wants by about ten percent or more, they will have a huge impact on lowering the cost of living,” said Shaw.
Shaw also says that if people cut down their spending by 10%, companies will notice, and prices may possibly start to decrease.