close
close

With inflation rates falling, consumers are still concerned about high prices

With inflation rates falling, consumers are still concerned about high prices

Although inflation has fallen slightly, consumers are still expressing concerns about the high prices they face every day, according to government figures.

When the US Federal Reserve convenes for its next meeting, it is possible that the central bank will cut short-term interest rates by another 25 basis points. However, it is still unclear how aggressive the central bank will be in further cutting rates as we head into 2025.

William Emmons is an adjunct lecturer at Washington University’s Olin Business School. He says what we’ve seen in the news doesn’t provide a full picture of what Americans face when it comes to their purchasing power.

RELATED | In the final report before the election, US inflation fell to the lowest level since early 2021

“These headlines are just averages, that’s part of it,” he said. “Older consumers, rural consumers and younger consumers who live more in cities have different consumption baskets.”

Emmons is a former economist for the Federal Reserve Bank of St. Louis. He says the people who suffer from higher prices are more vocal about that, while the people who in some cases benefit from lower prices may not shy away from making that outrage as full as possible — to paint a better picture. of what the economy is doing.

RELATED | While Trump touts tariffs, the report claims they would cost the average American $2,600 a year

As the 2024 U.S. presidential election approaches, economists say there will be differences in how the U.S. economy responds to each candidate’s policies.

Emmons says there are signs that the current economic policies of both Kamala Harris and Donald Trump could cause at least a little bit of inflation in the US economy.