![]() According to data published by Goldman Sachs, workers' earnings are growing at less than 5% per quarter, down from as much as 8% in 2021. ![]() Meanwhile, wage growth has begun to show significant declines after it experienced bumps during the pandemic. While gas prices have climbed more than 13 cents over the past month, to $3.61 a gallon, they are still below the $4 levels of a year ago. Indeed, prices are cooling substantially in other areas of the economy. Other data from shows rent growth peaked sometime around winter 2021-22. Rent data is considered a "lagging" indicator, meaning surveys are slower to capture real-time changes because most leases are at least 12 months long. The same month, rents had their largest one-month increase on record, climbing 8.2%. In February, food prices climbed about 10%, continuing a run of double-digit 12-month increases that stretch back to May. Allison Dinner / Getty Images file Cost of food and shelter remain stubbornly highįood and rent are among the categories that continue to have the largest price increases. Rents rose by 8.3% from March 2022 to March 2023, the largest-ever 12-month increase. "Slower economic activity and a looser labor market" - most likely meaning an unemployment rate higher than the current 3.5% - "will be necessary to fade these pressures," Shah said. But the flames of inflation are nevertheless being fanned by a still-hot job market, which has added 1 million positions in 2023. ![]() George Frey / Bloomberg via Getty Images fileīecause inflation numbers are closely tied to the Federal Reserve's decisions about how high interest rates should be, a majority of investors are betting the Fed will raise rates by 0.25% again at its next meeting May 3.Īnalysts say some of the key drivers of the post-pandemic spike in inflation, like supply chain issues and the elevated food and energy prices spurred in part by the war in Ukraine, are abating. A customer at a grocery store in Salt Lake City. Among the key categories still seeing outsized price growth are food, which climbed 8.5% from March 2022 to March 2023, and rent, which hit 8.3% growth, its largest-ever 12-month increase.Īs a result, cooling inflation won't prove much solace to consumers, who can still expect to feel the pinch in their pocketbooks for a while longer. But it's still well above the Federal Reserve’s 2% target. ![]()
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