Inflation report shows consumer prices are still high. What it means for Charlotteans

The latest report on inflation in the U.S. released Wednesday showed prices are still rising for many goods and services, but it did offer a silver lining for consumers hit hard by surging expenses.

Consumer prices rose 8.5% in July, the federal government said, a painful figure for many whose wallets have been hard hit for months by rising costs. But that rate does reflect a slight slowdown in inflation from the four-decade high hit in June.

Here’s what to know about the latest inflation report, what it means for the prices of everyday items in Charlotte and when relief could hit:

Latest inflation report

Prices continue to rise for many common goods and services in the U.S., the federal government’s latest inflation report said, with consumer prices up 8.5% year-over-year as of July.

That’s down slightly from June’s rate of 9.1%, which was the biggest yearly increase since 1981. And month-to-month prices held steady from June to July, something not seen in more than two years.

Experts have attributed the slight decrease in part to falling gas prices and their impacts on people’s expectations for inflation, the Associated Press reported, but many still expect the Federal Reserve to soon announce another increase in interest rates in an attempt to further quell inflation.

What items are getting pricier amid inflation?

In addition to the overall inflation report, the federal Bureau of Labor Statistics also provides details on the consumer price index — which measures change over time in prices — for different categories of goods and services, such as gas, housing and food, in the South region.

Explore how prices compare using the interactive graphic below (Tip: You can use the dropdown menu to add more categories or narrow them down):

What about gas prices in Charlotte and NC?

One area where North Carolinians have seen some relief is gas prices.

The average price for a gallon of regular gas in the state is $3.71 as of Wednesday, according to AAA, down from averages of more than $4 seen earlier in summer. North Carolina’s average is also less than the national average of $4.01.

Explore more about how gas prices compare across the state below:

Will the ‘Inflation Reduction Act’ help?

Wednesday’s report came as congressional Democrats and the Biden administration prepare for the expected final passage of a bill they’ve dubbed the Inflation Reduction Act.

The bill, which is expected to get final congressional approval Friday, includes significant investments in efforts to curb climate change, increases in some corporate tax rates and a new cap on out-of-pocket drug costs for seniors on Medicare.

Although the bill has been heralded by the president and his allies and fulfills some long-time Democratic Party goals, some analysts have said it will have a relatively minor impact on inflation.

The Associated Press contributed to this report.