The news: Inflation was lower than expected in July as energy and gas prices fell, but food and shelter costs continue to eat into consumers’ buying power.
Food costs grow: Despite the encouraging numbers, food prices show no signs of falling as shortages related to the war in Ukraine and high labor, commodities, and supply chain costs push companies to continue raising prices.
Consumers feel the squeeze: Nearly two-thirds (63%) of US adults worry about affording food and other basic necessities for themselves or their families, per a July PYMNTS survey.
A bit of relief: However, consumers may be seeing some price relief in the form of heightened promotional activity from brands and retailers.
The big takeaway: Declining energy, gas, and apparel prices may be easing the pressure on consumers, and forestalling aggressive action from the Fed to hike interest rates again.
Go further: Read our report on the Era of Uncertainty here.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.