In July, the national consumer price index fell just below 3 percent for the first time since 2021. Across the Midwest, prices are – in general – slightly lower, but there have been increases in some sectors.
The Midwest’s consumer price index (CPI) was below the national average at 2.7 percent, up slightly from June’s 2.5 percent.
The consumer price index is a measure of the average change over time in the prices that urban consumers pay for a basket of goods and services.
Rachel Blakeman, who directs Purdue University’s Fort Wayne Community Research Institute, said numbers below 3 percent are good news but still fall short of the goal.
“We are now seeing inflation coming down, but the target is an inflation rate of around 2 percent,” Blakeman said.
READ MORE: Everything you always wanted to know about inflation (but were afraid to ask)
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Blakeman said consumers have begun to reduce their spending as prices for most things have risen in recent years.
“When consumers start buying less, companies will also lower their prices,” Blakeman said.
The cost of purchasing a new or used vehicle has also dropped year-over-year. However, rent increases in the Midwest remain high – currently over 6 percent annually, which is about 1 percentage point above the national average.
Timoria is our reporter for work and employment. You can reach her at [email protected].
