Economists say that in the fight to conquer inflation, the easy progress has likely already been achieved. Gasoline prices, for example, though liable to bounce around from month to month, have already plunged from a peak national average of more than $5 a gallon, which was reached in June of last year after Russia’s invasion of Ukraine.
Last week, for example, the Labor Department reported that average hourly wages rose 4.4% in July from a year earlier, more than expected. To cover their higher labor costs, companies have typically raised their prices, thereby fueling inflation. Still, economists caution against reading too much into one month of numbers. Many of them expect inflation to continue trending lower.
This year, though, used vehicle prices began to drop once automakers managed to acquire more chips and could produce more new vehicles. Many shoppers who were forced to buy used are now back in the new-vehicle market. Used-vehicle prices are expected to decline, at least modestly, through the year.