Wages Grow as Inflation Remains Low and Stable

Summary:
The article highlights that inflation is stable at a low rate while real wages continue to rise. It points to broad-based price relief in everyday categories, improved small business sentiment, and easing shelter inflation as signs of a favorable economic environment.

Key Points:

• Inflation trend: Since President Trump took office, inflation is tracking at 1.9% and described as low and stable.
• Real wages: Real average weekly earnings increased in July; up 1.3% year-over-year, with monthly increases since the start of the Administration.
• Labor conditions: Wage growth is outpacing inflation, and Americans are getting more hours at work.
• Price declines: Noted year-over-year drops include smartphones (-14.7%), energy commodities (-9%), hotels (-4.8%), education and communication commodities (-4.3%), ship fares (-4.9%), internet services (-2.4%), frozen vegetables (-2.2%), and peanut butter (-3.3%), among others. Gasoline is down nearly 10% and propane down 2.5% versus last year; eggs down 20% since the Administration began.
• Shelter costs: Shelter inflation is at its lowest level since October 2021.
• Business sentiment: Small business optimism hit a five-month high; Bloomberg notes improved outlook and expansion plans.

Notable Quote:

• “Today’s CPI report revealed that inflation beat market expectations once again and remains stable… real wages are rising.” — White House Press Secretary Karoline Leavitt