Consumer prices fell, incomes rose in July as inflation eases
by Sylvan Lane - 08/26/22 8:51 AM ET
Consumer prices fell in July and wages rose even when adjusting for inflation, according to data released Friday by the Bureau of Economic Analysis.
The personal consumption expenditures (PCE) price index — the Federal Reserve’s preferred gauge of inflation — fell 0.1 percent in July and rose just 0.1 percent when stripping out food and energy prices.
The PCE index was up 6.3 percent in July from the same month one year ago, down sharply from the 6.8 percent annual inflation rate in June. Annual inflation without food and energy prices, also known as core inflation, fell from 4.8 percent in June to 4.6 percent in July.
Much of the July dip in inflation came from a steep decline in gasoline prices, reversing a staggering June spike in oil prices that pushed the average cost of a gallon of gasoline above $5 in the previous month. Prices for energy-related goods and services fell 4.8 percent in July after rising 7.5 percent in June, according to the PCE index.
While prices for most goods ticked downward in July, food prices continued to climb with a 1.3 percent increase last month. Prices for food were almost 12 percent higher in July than in the same month in 2021.Even so, the broader dip in consumer prices helped incomes rise 0.2 percent on the month. Disposable income adjusted for inflation also rose 0.3 percent after falling 0.2 percent in June, which BEA pinned primarily on wages rising faster than inflation last month.
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https://thehill.com/policy/finance/3616623-consumer-prices-fell-incomes-rose-in-july/
