Understanding Inflation Trends

The Consumer Price Index (CPI) for September shows that the cost of living has increased by 2.4% over the past year, marking the smallest annual rise in more than three and a half years. Although inflation is declining, it is not decreasing as rapidly as anticipated, which leaves consumers facing continued financial pressure. Rising prices for groceries, particularly eggs, as well as new and used cars and auto insurance, have been significant pain points. Fortunately, wages have been increasing faster than prices for the last 17 months, allowing workers to gradually catch up with the effects of prolonged inflation.