Jul 17, 2023 - News

Inflation rate drops in metro Atlanta

Data: BLS; Chart: Axios Visuals
Data: BLS; Chart: Axios Visuals

Inflation across the country — and in metro Atlanta — has dropped from its peak roughly one year ago.

Driving the news: The Consumer Price Index rose 3% in the 12 months through June — the smallest increase since March 2021, according to data released this week, Axios' Courtenay Brown writes.

  • Metro Atlanta has felt the pinch worse than the rest of the country and saw prices increase 4.6% during the same time period.
  • By comparison, the region's CPI increased nearly 10% at the end of 2021.

Why it matters: The worst of the inflation crisis looks to be firmly behind us. Price gains appear to be on a path to returning to normal, though there is huge uncertainty around how long that will take, with plenty of hurdles still ahead.

Details: Sharply lower energy prices continue to be a major factor pulling down overall inflation. Gasoline prices, for instance, are down 26.5% compared to a year ago.

Zoom in: The average price for a gallon of regular gas in metro Atlanta is down more than 22% over the same period, per AAA.

  • The current average is about $3.29 — well below the peak of $4.23 last June.

Yes, but: Rent price increases nationwide showed no sign of slowing — rising 0.5% in June, the same pace as the previous month.

What's next: Many economists expect the Fed to hike interest rates once again later this month. The goal: keep slowing down the economy and get back to a 2% inflation target.

What they're saying: Raphael Bostic, the president of the Atlanta Fed, told the Cobb County Chamber of Commerce this week he favored keeping rates steady, as recent reports show him that the Fed's policies to tamp down inflation were working.

  • “We have got that momentum going," Bostic told reporters, according to Bloomberg. “You could see inflation getting back to 2% without having to do more.”

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