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National Consumer Price Index drops below 3 percent. Prices slightly lower across Midwest

By Timoria Cunningham

Posted August 20, 2024

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The Midwest Consumer Price Index sat below the national average at 2.7 percent — a slight increase over June's measurement which stood at 2.5 percent. (Brandon Smith/IPB News)

In July, the national Consumer Price Index fell slightly below 3 percent for the first time since 2021. Prices are slightly lower – in general – across the Midwest, but some sectors have seen increases.

The Midwest CPI sat below the national average at 2.7 percent — a slight increase over June's measurement which stood at 2.5 percent.

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of goods and services.

Rachel Blakeman directs the Purdue University Fort Wayne Community Research Institute. Blakeman said numbers below 3 percent are good news, but still fall short of the target.

"We're now recognizing that inflation is slowing, but the goal is to be at approximately about a 2 percent inflation rate,” Blakeman said.

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Blakeman said since prices for most things have increased in recent years, consumers have started to decrease their spending.

"As consumers start to scale back, then that's going to prompt companies to scale back their prices," Blakeman said.

The cost to purchase a new or used vehicle has also gone down year over year. Rent increases in the Midwest remain high however — currently standing at more than 6 percent annually, which is about 1 percentage point higher than the national average.

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.