HOUSTON — Gas prices are much higher this year compared to last year but the national average for a gallon has dropped about $1 since mid-June.
That’s a big reason why the pace of inflation is slowing down. The Consumer Price Index shows prices were up 8.5% in July compared to the previous year. That’s historically high but better than June’s 9.1%.
"It appears that June may have been the peak in inflation and I don't want everyone to get too excited because it's just one month," CBS News Business Analyst Jill Schlesinger said.
The new report shows prices for education books and supplies only increased 3.1% over last year. Computers dropped 3.5% and smartphones are down 20% in the past 12 months.
"One month doesn't make a trend, but if things go well in the future, I think that we are likely to see prices trending lower through this year and into next," Schlesinger said.
While prices on some items are coming down, there’s still sticker shock at the grocery store. Food prices are up more than 13% over last year. That’s a rate that hasn’t been seen since 1979.
Rent costs are also rising rapidly.
The Federal Reserve will meet next month and is expected to implement more measures to try and slow down the increasing prices.
Some other bright spots in the report include airfares, which dropped nearly 8% from June to July. Hotel costs and used car prices also fell.