Inflation is down to 1% in the Twin Cities, best in the nation

The Consumer Price Index in the Twin Cities rose only 1% in July, the lowest year-over-year increase of a major U.S. metro area since early 2021, according to Bureau of Labor Statistics data.

Why it matters: Inflation has cooled to a point in the Twin Cities that median wages are significantly outpacing rising costs.

• Wages in the Twin Cities were up 4% year-over-year in June, according to BLS data.

Yes, but: While 1% inflation is a historically good number, it doesn't mean prices have come back down to 2021 levels before inflation was red-hot.

Between the lines: Over the past several months, inflation in the Twin Cities has been cooling faster than other metro areas thanks in large part to stagnating housing costs.

• Food prices have stubbornly continued to rise here but slowed to a 3.5% jump year-over-year in July.

What they're saying: "I don't see anything in these numbers that looks like it's going to usurp our position as the lowest inflation metro area in the country anytime soon," University of St. Thomas associate professor of economics Tyler Schipper told the Star Tribune.