US inflations slows, gas prices fall sharply

With gas prices plunging after an all-time high average price in June, a new report shows inflation slowing to 8.5% in July compared to one year ago.
2:19 | 08/11/22

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Transcript for US inflations slows, gas prices fall sharply
>> ALL RIGHT, WE COULD BE WAITING FOR SOME TIME HERE. DAN ABRAMS AND JON KARL TONIGHT, THANK YOU. >>> IN THE MEANTIME, WE TURN TO THE OTHER MAJOR HEADLINE THIS WEDNESDAY NIGHT, THAT NEW REPORT SHOWING INFLATION HAS EASED SLIGHTLY, FALLING BACK FROM ITS 40-YEAR HIGH. IT'S SLIGHT, BUT WELCOME NEWS. CONSUMER PRICES IN JULY WERE 8.5% PRICES A YEAR AGO. PRICES FOR FOOD AND RENT REMAIN STUBBORNLY HIGH AND MILLIONS OF AMERICANS ARE STRUGGLING TO MAKE ENDS MEET. ABC'S VICTOR OQUENDO IN MIAMI TONIGHT. >> Reporter: TONIGHT, THAT PROMISING SIGN FROM THE GOVERNMENT ON THE STATE OF THE AMERICAN ECONOMY. INFLATION, WHICH HAD BEEN AT A 40-YEAR HIGH FOR MUCH OF THIS YEAR, APPEARS TO BE SLOWING DOWN, FROM 9.1% IN JUNE TO 8.5% FOR JULY, COMPARED TO A YEAR AGO. PRESIDENT BIDEN TODAY REACTING TO THE FIRST POSITIVE NEWS ON INFLATION IN MONTHS. >> IT'S FAR FROM DONE IN OUR EFFORT TO BRING INFLATION DOWN, BUT WE'RE MOVING IN THE RIGHT DIRECTION. >> Reporter: LEADING THE DOWNWARD PUSH IN PRICES -- GASOLINE. AFTER AN ALL-TIME HIGH AVERAGE PRICE OF MORE THAN $5 IN JUNE, THE NATIONAL AVERAGE NOW $4.01 A GALLON. >> EVEN THOUGH IT'S GONE DOWN AND I APPRECIATE THAT, IT'S STILL UNREASONABLE. >> Reporter: WHILE GAS IS COMING DOWN, FOOD IS STILL SOARING. YEAR OVER YEAR, IT'S UP MORE THAN 13%. THE LARGEST INCREASE SINCE MAY OF 1979. THE TYPICAL AMERICAN HOUSEHOLD NOW PAYING ABOUT $460 A MONTH MORE FOR THE SAME STUFF THIS TIME LAST YEAR. >> JUST FOR CONTEXT, THE AVERAGE AMERICAN HOUSEHOLD MAKES ABOUT $65,000 A YEAR, SO, THAT'S A VERY SIGNIFICANT HIT TO INCOME. >> Reporter: PHYLLIS THOMAS IN MIAMI WORKS THE NIGHT SHIFT AND IS TAKING CARE OF TWO GRANDCHILDREN. THE SCHOOL YEAR IS STARTING SOON. THEY NEED SUPPLIES AND UNIFORMS. HOW DIFFICULT IS IT TO GET THE KIDS READY FOR SCHOOL WHEN YOU ALSO HAVE ALL YOUR OTHER EXPENSES ON THE RISE, AS WELL? >> WHEN YOU TRY TO JUGGLE HOME AND BILLS AND STUFF, YOU JUST GOT TO, LIKE -- IT'S NO WAY YOU CAN BALANCE ALL OF THAT AT THE SAME TIME. >> Reporter: PHYLLIS, LIKE SO MANY, RELYING ON THE CHILDREN'S TRUST, TODAY GIVING OUT SCHOOL SUPPLIES FOR FREE. AND ECONOMISTS TELL US THAT WHILE INFLATION IS STILL HISTORICALLY HIGH, THE WORST OF IT MIGHT BE BEHIND US, ESPECIALLY WITH THESE FALLING GAS PRICES. WE'RE JUST NOT QUITE IN THE CLEAR YET. DAVID?

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