This month, inflation didn’t rise. All that means is that we’re still cruising with the same inflation from June, which, as felt by consumers, was brutal. Because this is a technical zero percent increase in inflation, President Joe Biden has been touting “zero inflation.”
How bad is inflation still? As in June, July's inflation numbers were still at 8.5%. In the past 12 months, food is still up 10.9% and energy is up 32.9%.
What’s causing the zero increase? Consumers have become less likely to spend money on nonessentials. Many are cutting back on driving because of the high prices, which lowers the demand for and, in turn, the cost of gas. Analysts say these lower gas prices are the main reason behind the “zero” inflation increase.
Big picture: It’s a good sign that inflation didn’t increase even further last month, but it doesn’t mean much else. Inflation is still high, and Americans can feel it.