The personal consumption expenditures price index, or PCE, for last month showed an easing of prices and the lowest inflation rate since 2021. This could lead the Federal Reserve to stop raising interest rates.
Daniel Hornung, Deputy Director of the National Economic Council, sums up what the numbers tell us.
“The data we got this morning show continued progress on bringing inflation down. Inflation is now down to its lowest level in two and a half years. That's really driven by some key price declines. Gas is down from a peak of about $5.00 to now below $3.30 nationwide. We're seeing declines in a range of grocery items, from eggs and milk to chicken,” he said.
Gas prices in Florida are even lower than the national average.
“The gas price in Florida on average is in the $3.20s. That's important progress that we've seen. Again, it was much higher, above $5 a gallon,” said Hornung.
Despite the positive numbers, he says, it may take some time for people to feel good about the economic climate.
“There's no doubt it's been a difficult few years, as we've come out of the pandemic, people have had enormous disruptions to their lives. But our hope is that as the American people continue to feel their wages go up, their wealth go up, and inflation to moderate and some prices to actually come down, people will start to see the effects of the President's policies on their lives,” Hornung said.
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