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Inflation down. Prices up. Both are true

Inflation is one of the biggest issues in this election. Let's clear up confusion about the topic...

GREENSBORO, N.C. — Inflation is one of the biggest issues of this election. One side says prices are still going up. The other side says inflation is going down. Both of those claims are true. Here's how...

Last month the average price of stuff like food and gas went up 3 percent from the year before. While the prices went up in June, it's not as much as the month before that. Prices in May rose 3.3 percent over the year. That means the rate of inflation is cooling down.

Take a look at this chart from the US Bureau of Labor Statistics. You can see how much the rate of inflation is down from the peak of June 2022 when prices rose by 9.1 percent that month. 

Credit: US BLS

CBS News's money analyst Jill Schlesinger sums this all up: "The inflation rate is moving in the right direction, but it's probably not going to help a lot of families that are struggling with high prices. Things are moving in the right direction. It's good news for consumers. It's also good news for investors who want to see the federal reserve cut interest rates."

One more piece of perspective on the economy. The nation added 206,000 new jobs last month, according to the Labor Department. That's more than expected, but unemployment ticked up to 4.1 percent. It's the highest rate since fall 2021, but experts say that's still a sign that hiring remains strong and we have a good economy.

"That is fits right in the picture of this is a good economy. 4.1%. unemployment is very low," said Claudia Sahm, Chief Economist at New Century Advisors.





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