With inflation in the United States slowing down in October, many think this could be a sign that the Federal Reserve’s interest rate hikes are continuing to cool the price spikes that have frustrated consumers for the past two years.
Tuesday’s report from the Labor Department shows that prices either fell or rose only slightly across a broad range of goods and services — including the price of gas, new and used cars, flights and lodging.
However, people in Jacksonville said they are not feeling the impact of this slowdown in inflation yet.
“Definitely spending more! Always, every day,” a Jacksonville resident said.
When asked if there would be a difference in their holiday spending and budgeting, residents responded they expect to spend more this year.
“Because everything costs higher. But I’m going to be getting less but spending more,” another Jacksonville resident said.
Another resident said they are “probably going to have to spend 30% more to get the same thing.”
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The Consumer Price Index has hit a two-year low, a hopeful sign that stubbornly high prices are coming back down to Earth.
Overall inflation was unchanged from September to October with consumer prices rising 3.2%. That’s down significantly from last October’s CPI of almost 8% (7.8%).
“What it means is that it’s not getting worse at the same pace that it was getting and that’s good news,” Certified Financial Planner Bert Costa said.
Here’s where consumers are expected to see the biggest difference, compared to a year ago:
Used car prices are down 7.1%Airline fares are down 13.1%Gas prices are down 5.3%Egg prices are down 22.1%Toys prices are down 3.7%
MORE | What’s pushing inflation down? More goods, workers and housing
“It seems like inflation is slowing down. So that’s a real positive thing and it brings optimism to the economy,” Costa said.
The Federal Reserve has a target of getting inflation back down to 2%.
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