WEB: Americans May Be Dealing Final Blow to US Inflation Spike
Americans No Longer Willing to Pay Higher Prices
Why This Matters
The refusal of Americans to keep paying higher prices is a key indicator that the US inflation spike may be coming to an end. As a result, the Consumer Price Index (CPI) may show that prices excluding volatile food and energy costs rose just 0.32% from April to May 2023. This slowdown in inflation can be attributed to consumers becoming more price-sensitive, a shift that is helping to push inflation towards its target range.
The CPI report for July, released on Wednesday, is expected to support this trend. It is likely to show that prices of airfares, furniture, and clothing all fell in May. This continued decline in inflation is a positive sign for the US economy.
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