The Federal Reserve is still working to slow inflation, but some economists say things are getting better.
The Consumer Price Index (CPI) shows consumer inflation slowed down slightly compared to September. This report measures the change in the prices you pay for everything you buy from groceries to rent.
This latest report shows the smallest 12-month increase since the end of January.
Economists say while the inflation rate may be slowing down, you are still paying more for some goods.
“We might see some relief on food and energy prices, but for things like, you know, hotels or airfares, you know, they tend not to go down a lot,” said Prof. Gabriel Mathy, Dept. of Economics at American University.
The new data shows the price you pay for your rent and your home increased last month.
“Shelter is still rising a lot and rents are rising a lot in the data in the way they calculate the CPI, though, we should see some relief in the future,” said Mathy.
This report also shows gas, electricity and food prices are more expensive.
“Whether it’s the price of groceries or higher home heating costs Democrat one party rule in Washington has left families struggling to balance their budgets,” said Rep. Elise Stefanik, R - New York.
Republicans are slamming the Biden Administration for these higher prices, and they say this will hurt middle class families.
“There are simple solutions for lowing these costs. We need to unleash American energy production, dramatically increase our housing supply, and help get workers back to work,” said Rep. Bryan Steil, R – Wisconsin.
The Washington News Bureau talked one-on-one with Jared Bernstein, one of the President’s top economic advisors, about this latest report.
“It’s still too high and we have a ways to go to get back to where families are more comfortable with the prices they face. But you’re not going to get to the destination if you’re not moving in the right direction. And this morning report shows that in fact, we are,” said Bernstein.
He believes this report shows progress and it will take time to get inflation back to normal levels.
“I think the President has shown he’s got real street cred when it comes to taking efforts to help ease precisely the challenges those families face,” said Bernstein.
Consumers aren’t the only ones feeling the impacts of this information.
The Federal Reserve will also review it as they consider next steps for addressing high inflation.
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