Slowing inflation delivers much-needed relief to families sending their children back to school.
WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation, as measured by the consumer price index (CPI) on all items, increased by 2.7% for the 12 months ending in July, unchanged from June.
Energy prices fell an additional 1.6% in July after falling 0.8% in June. Gasoline prices dropped by an additional 9.5% in July after lowering by 8.3% in June. Food prices rose 2.9% in July, down from 3.0% in June, and groceries rose 2.2% also down from 2.4% in the previous month.
Core inflation, which excludes volatile energy and food prices, accelerated, increasing at a pace of 3.1% in July after rising 2.9% in June.
Real average weekly wages increased by 1.4%.
Inflation during President Trump’s 2nd term thus far is an annualized 1.4%, which is less than half the 3.1% annualized rate during former President Biden’s last 30 months and the 8.6% rate during Biden’s first 18 months.
Patrice Onwuka, director for the Center for Economic Opportunity at Independent Women, issued the following statement:
“Inflation is coming down, especially for the categories that affect American families most. As families shop for the back-to-school season, clothing prices for boys (1.9%) and girls (-1.9%) are slowing or falling as apparel prices continue to trend down. Prices on educational materials and supplies are slowing, and prices on phones and calculators (-8.8%) are falling. Computer prices have slowed from almost 5% to just 1% in just one month.
“All Americans are getting consistent price relief at the grocery store as prices slowed to 2.2% from 2.4% and at the gas pump as gasoline prices have fallen almost 10%. Although shelter, the biggest driver of the inflation rate, remains a big headache for people, shelter prices slowed in July from June, signaling that stubborn high rents are coming down and housing is growing a bit more affordable.
“The tariff effect has yet to materialize across the economy despite the widespread fears that it would tank the economy. American businesses now have greater clarity about the tariffs, along with certainty that their taxes will be lowered and regulations will be eliminated. The pro-growth Trump agenda is making good on the promise to spur production and innovation in the American economy and delivering lower prices.”
###
Independent Women’s Forum is dedicated to developing and advancing policies that aren’t just well intended but actually enhance people’s freedom, choices, and opportunities.
Independent Women’s Forum’s Center for Economic Opportunity (CEO) aims to educate the public about how government policies impact people’s opportunities for economic development and upward mobility.