We continue to see encouraging economic developments, including strong job growth and lower energy prices.
First, consumer price data showed headline inflation was 0.0% last month. This moderation compared to the previous month was driven by falling gas prices and lower prices for clothing, airline tickets, electronics, used cars and more.
Second, today’s new data show declining prices that producers pay to make the goods and services that consumers and businesses buy, such as gasoline, jet fuel, iron and steel.
And third, the national average price of a gallon of gas fell below $4 today. This provides much-needed breathing space for families across the country.
While this week’s news is encouraging, we have more work to do to reduce inflation, without giving up the significant economic and labor market gains of the past year. Congress should pass the Inflation Reduction Act as soon as possible, which will help our economy address some of its most important short-term and long-term challenges.