Inflation rates take positive turn for July; people still not feeling the relief just yet
MILWAUKEE (CBS 58) -- Some potential good news on the economic front tonight, on Aug. 10.
After 19 straight months of rising prices, the US inflation rate took a turn for the better in July.
A local economist tells us even though the inflation rate went from 9.1 percent in June to 8.5 percent in July, you need to look at the reasons why it fell. And how much consumers are feeling that slight fall is what really matters.
This is Dewayne Lee, proud father of 3-year-old Hendrix.
"I have a lot of other bills so if I was only working one job I couldn't do it," said Dewayne Lee of Milwaukee.
Finances forced Lee to move home for a time. He's renting again at $840 a month, and is quick to tell us he doesn't feel like things are any better today.
"And then I go home, shower and go to the next just to get by because everything is so expensive," said Lee.
While it's true inflation fell from June to July, overall, we're still paying 8.5 percent more for things compared to this time last year.
"The decline that has taken place, I think we should not declare victory because the inflation is still very high and the causes for the decline may prove to be transitory in nature," said Professor Kundar Kishor, Chairman of the UW-Milwaukee economics department.
Things like gas prices, airfare and used cars, all down this summer. But, food costs are up, groceries are costing 10.9 percent more than last year. Rent is also continuing to increase.
"Rent prices are not going to go down as quickly as say the energy prices have over the last few months," said Kishor.
Professor Kishor also says mortgage rates and the interest on car loans may continue to rise.
"So to bring down the inflation back to two percent they have to slow down the economy a bit so that the demand cools down and the supply and demand matches," said Kishor.
Despite continued economic challenges, the White House is taking this moment to point out the positives.
"But it's far from done in our effort to bring inflation down. But we're moving in the right direction," said President Joe Biden.
The federal reserve is doing what it can to prevent us from slipping into a recession. It is expected to raise rates in Sept.