Money News You Can Use

Jim Brogan, MBA

President and Founder of Brogan Financial

Knowledge is power, and that’s why we created ‘Money News You Can Use.’ We find articles each month and post them here so you can stay informed of the latest financial news and arm yourself with knowledge when preparing for retirement. We know most people don’t have time to sift through hundreds of articles to find the most relevant and helpful ones, which is why we do it for you!

In this month’s edition of Money News You Can Use, we explore the ongoing inflation trends and their impact on consumer costs. Prices for items like used cars, electronics, and furniture have eased, helping inflation hit its lowest rate in three years. However, rising costs in healthcare and car insurance continue to burden households. While inflation is cooling, many essential services, including rent and insurance, are still seeing price hikes, leaving Americans grappling with higher living expenses compared to pre-pandemic levels. The Federal Reserve is expected to announce further interest rate cuts in response to these economic shifts, but concerns linger over persistent housing and rent costs despite the overall slowdown in inflation. Don’t miss these useful insights to stay informed about how these changes may affect your financial future.

MONEY NEWS YOU CAN USE: 

Inflation and Its Impact on Your Everyday Expenses

Cell phones, furniture, used cars: Here's where prices are easing up as inflation cooldown continues

Inflation in the U.S. has hit a three-year low, with the Consumer Price Index (CPI) rising just 0.2% month-over-month in August and 2.5% year-over-year. This easing marks the lowest annual inflation rate since early 2021. While overall grocery prices remained flat compared to July, restaurant meal costs surged by 4% over the past year, and certain food items like eggs and frozen juices still experienced notable price increases. Conversely, prices for some grocery items such as coffee, ham, potatoes, and apples have declined, indicating a more balanced trend in food prices.

Inflation continues to cool but some items are still pricey — here’s what’s rising most

The U.S. inflation rate has cooled, reaching 2.5% in August 2024, its lowest point since February 2021. The slowdown comes as the Federal Reserve considers lowering interest rates for the first time in years, aiming to rebalance the economy after a period of heightened inflation. However, prices remain significantly higher than pre-pandemic levels, with costs for essential items like shelter, transportation services, and motor vehicle insurance still rising. For example, egg prices increased by 28.1% between August 2023 and 2024, and other products like frozen juices and motor vehicle insurance saw sharp increases as well.

Inflation cools to 2.5%, slowest rate in more than three years

Inflation in the U.S. slowed to 2.5% in August 2024, its lowest rate since 2021. This decline is in line with the Federal Reserve’s goal of 2%, signaling progress after years of rapid price increases. Despite the cooling inflation, the impact of price hikes over the past four years continues to burden consumers, especially in key areas such as housing, where costs have remained high. Food prices, while slowing, are still up 2.1%, and gasoline prices have fallen more than 10% from a year ago. Rising housing costs were also a significant contributor to the core inflation rate, which unexpectedly rose by 0.3% month-over-month.