Inflation slows as US economy rebounds

ABC News' Zohreen Shah and ABC News business reporter Alexis Christoforous discuss the latest on the economy as wholesale prices rose 9.8% over the past year as of July.
3:10 | 08/11/22

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Transcript for Inflation slows as US economy rebounds
AS CONSUMERS GRAPPLE WITH INFLATION, NEW DATA POINTS SHOW IT MAY BE SLOWING. PRICES RAISING 9.8 PERCENTAGE LIVED COMPARED TO A YEAR AGO. BUT THE BRIGHT SPOT, WHOLESALE INFLATION FELL FIVE PERCENTAGE VERSUS THE PREVIOUS MONTH. AS FOR THE BIG PICTURE, WE BRING IN ABC NEWS BUSINESS REPORTER, ALEXIS CHRISTOFOROUS, AND ABC NEWS -- WITH ME NOW. ALEXIS, PRICES STILL UNUSUALLY HIGH IN INFLATION COOLING. NOT IN EVERY CATEGORY. >> NOT IN EVERY CATEGORY, FOR SURE. FIRST THE BIG PICTURE ON THESE TWO INFLATION REPORTS THIS WEEK, THEY ARE SHOWING THAT INFLATION IS DECELERATING. LET'S NOT BE FOOLED. INFLATION IS STILL AT ELEVATED LEVELS, AND HERE FOR DECADE HIGH. AT LEAST, WE ARE MOVING IN THE RIGHT DIRECTION. A BIG REASON WHY WE SAW THAT DECELERATION IN HIGHER PRICES IS BECAUSE OF ENERGY. WE SAW GAS PRICES COME DOWN QUITE A BIT. THEY ARE NOW DOWN I THINK 51 DAYS IN A ROW. NOW AVERAGING A LITTLE LESS THAN $4 A GALLON NATIONWIDE. STILL, WE ARE ALL PAYING MORE FOR FOOD AT THE GROCERY STORE. DOWN ABOUT EVERY AISLE YOU GO. ALSO AT RESTAURANTS, PRICES ARE HIGHER. RENT, WHICH IS A BIG COMPONENT OF INFLATION, PRICES CONTINUING TO MOVE HIGHER. NOT A LOT OF RELIEF FOR FOLKS. THIS IS BROAD BASED INFLATION, DEIRDRE. >> ALEXIS, YOU SPOKE ABOUT THIS IN THE PAST. RENT AND GROCERIES IN PARTICULAR ARE TWO THINGS PEOPLE REALLY CANNOT BUDGET ON. I SUPPOSE A LITTLE BIT WITH GROCERIES. NOT SO MUCH WITH RENT. YOU MENTIONED THE PRICE OF GASOLINE COMING DOWN, A BIG RELIEF TO ALL DRIVERS. IS IT LIKELY TO STAY LOWER? >> WE CAN HELP. BUT ENERGY IS A VERY VOLATILE THING. A LOT OF DIFFERENT THINGS CAN MOVE THEM. MAINLY, HURRICANE SEASON, WHICH WE WILL BE IN THAT THEY GOT PRETTY SOON, DEPENDING ON THE SEVERITY OF THAT, WE COULD SEE REFINERIES PULLBACK OR SHUT DOWN. THAT WOULD TAKE MUCH NEEDED OIL OFF THE MARKET. ANY GEOPOLITICAL EVENT COULD ALSO IMPACT HOW MUCH OIL IS ON THE MARKET. IT'S ALWAYS A SUPPLY AND DEMAND GAME. RIGHT NOW, A LOT OF DRIVERS, ESPECIALLY IN THE U.S., ARE DRIVING LESS, EVEN THOUGH IT IS A BUSY SUMMER DRIVING SEASON, BECAUSE OF THESE HIGHER PRICES. NOW, WE ARE UNDER FORWARD DOLLARS A GALLON NATIONWIDE. I DON'T THINK I'D BET THE HOUSE IT WILL STAY THAT WAY FOR THE REST OF THE SUMMER. >> THANK YOU. SERENE, BRINGING YOU IN ON THE POLITICAL ANGLE. WE HEARD PRESIDENT BIDEN SAY YESTERDAY INFLATION IS BEGINNING TO, QUOTE, MODERATE. POLLING HAS NOT BEEN IN HIS FAVOR. HOW IS THIS LIKELY TO PLAY OUT, ESPECIALLY AS WE GO TOWARD MIDTERMS? >> LISTEN TO HIS ELECTRIC EXACT WORDS, THE. BIDEN SAID SOME SIGNS INFLATION MAY BE BEGINNING TO MODERATE. INCREDIBLY CAUTIOUS WITH HIS WORDS. HE MADE IT CLEAR THERE WAS STILL WORK TO BE DONE, THAT WE ARE STILL FAR FROM OVER. HE GOES INTO TALKING ABOUT THE GLOBAL CHALLENGES. AS IF THE SITE, LOOK, I'M DOING EVERYTHING I CAN AT HOME. THERE IS STILL A WORLD OF POSSIBILITIES OUT THERE. HE MENTIONED THE UKRAINE WAR, HE TALKED ABOUT THE SUPPLY CHAIN ISSUES THAT STILL EXIST. THEN HE TALKED ABOUT A COVID-19 SHUTDOWN STILL TAKING PLACE IN ASIA. IN THE MONTHS AHEAD, THINGS MIGHT STILL BE MURKY, A BIT UNCLEAR. NOT EXACTLY TOUTING THIS AS A WIN. CERTAINLY NOT A LOSS, RIGHT?

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