Costly cereal: Inflation drives rise in Twin Cities grocery prices

Inflation locally and nationally is finally easing, according to Consumer Price Index data released Wednesday.

Why it matters: Inflation has hit consumers hard as wages have not kept up with prices. That's been especially true at the grocery store.

Zoom in: Food prices are rising faster in the Twin Cities metro (up 13.5%) than the rest of the country (10.2%).

• Cereal and baked goods prices are up 17.2% compared to last year.
• Dairy products are up 16.4%.

Yes, but: Housing costs, especially rental housing, are not growing as fast as the rest of the country.

• Nationally, rent is up 6.3%. Here, it's only up 3.9%, which is less than wage growth.

Zoom out: Falling gas prices are cooling inflation, writes Axios economic reporter Neal Irwin, and the broader inflation picture was more favorable in July than economists had expected.

What's next: The Federal Reserve has indicated it intends to keep raising interest rates until there is clear evidence inflation is waning. After two straight months of extremely hot inflation readings, this report will be welcome news, Irwin writes.