Inflation Declined in August, Nearing Pre-Pandemic Levels

Inflation declined to 2.5% in August as gas prices fell around the country, according to a monthly report of the consumer price index from the U.S. Bureau of Labor Statistics, which found inflation returning close to pre-pandemic levels.

The CPI report found inflation nearing the rate observed in the month just prior to the COVID-19 pandemic and at its lowest point since February 2021.

In a Wednesday press release, National Economic Advisor Lael Brainard said the report served as evidence the United States was “turning the page on inflation” and reinforced the importance of preserving historic gains for American workers.

“The President and the Vice President are fighting to lower costs, expand opportunities, and grow the middle class,” Brainard said. “That means creating jobs and supporting small businesses in communities across the country. It means cutting taxes for middle class families and hardworking Americans, while asking billionaires and large corporations to pay their fair share to reduce the deficit. And it means making housing, health care, and prescription drugs more affordable.”

Meanwhile, gasoline prices declined by 0.6% during the month of August, according to the report. The relief at the pump nationwide corresponds to falling gas prices observed here in Connecticut.

On the Thursday before Labor Day Weekend, the Automobile Association of America (AAA) placed the average price of a gallon of regular unleaded gasoline at about $3.39 in Connecticut — a decline of around 41 cents from the previous year. Last week, News12 reported gas for sale at prices as low as $2.94 a gallon in Bridgeport.

The decline in the costs of some consumer goods come as wages continue to climb while unemployment rates decline around the country. According to the White House, wages have outpaced prices for 18 consecutive months and have accompanied the lowest unemployment rate in decades.

Meanwhile, Connecticut employers have steadily added jobs throughout 2024 amid a decline in the state’s unemployment rate. The state Department of Labor announced in August that the unemployment rate had dropped to 3.6% — well below the national average of 4.3%.

“Overall, the data points to a strong economy with low unemployment and tens of thousands of job opportunities across industry sectors,” Connecticut Labor Commissioner Danté Bartolomeo said in an August press release.

Posted by Hugh McQuaid