“And new data shows that shoppers have become more price-conscious recently despite cooling inflation, at least in part because their Covid-era savings have shrunk,” the report said.
NEW YORK, Aug. 12 (Xinhua) — Although the price increase caused by the pandemic has slowed significantly, Americans remain concerned about the cumulative increase in costs they have faced since the health crisis began, especially for essential goods such as food and gasoline, USA Today reported Monday.
“And new data shows that shoppers have become more price-conscious recently despite cooling inflation, at least in part because their Covid-era savings have shrunk,” the report said.
“The mere fact that prices are no longer rising is not appeasing consumers,” said Scott Hoyt, an economist at Moody’s Analytics, especially low- and middle-income people who are bearing the brunt of rising costs. “They want prices to come down, but that’s not happening.”
Citizens’ views on inflation are important because they can influence their spending, which accounts for 70 percent of economic activity and has slowed but remained stable so far, the report said.
Annual inflation fell to 3 percent in June from a 40-year high of 9.1 percent in mid-2022, according to the Labor Department’s consumer price index. The July CPI report, due out Wednesday, is expected to show that headline inflation held steady at 3 percent in July, but a core indicator that excludes volatile food and energy products fell to 3.2 percent from 3.3 percent, according to the report.
“Although consumers are relatively positive about the labor market, they still seem concerned about high prices and interest rates,” said Dana Peterson, chief economist at the Conference Board, of the group’s July survey.
“Americans do indeed have greater purchasing power. But they don’t necessarily feel it,” the newspaper noted.
What worries consumers, according to Hoyt, is the price change in recent years. ■
