While the July and August Consumer Price Index numbers show “inflation has stalled,” a Georgia expert warns that “we’re not out of the woods yet.”
On Tuesday, the U.S. Bureau of Labor Statistics announced that the CPI rose 0.1% in August and 8.3% year-over-year.
“There are warning signals, including worldwide drought and continued energy disruptions, that inflation is not yet tamed,” Erik Randolph, the Georgia Center for Opportunity’s (GCO) director of research, said in a statement. “Moreover, Federal Reserve policy is refusing to allow the price level to come back down, meaning that most households will continue to contend with higher prices and lagging income growth.”
Meanwhile, a National Federation of Independent Business survey found optimism has improved, but inflation remains a challenge for small businesses.