Is inflation at a turning point?

Published: Aug. 11, 2022 at 8:38 PM CDT
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BRYAN, Texas (KBTX) - AAA reports the national average for a gallon of regular gas just dipped below $4 for the first time in months but is this a sign of good things to come?

Dennis Jansen, the Director of the Private Enterprise Research Center and the Jeff Montgomery Professor of Economics at Texas A&M University, joined First News at Four to discuss whether Americans should be feeling optimistic about inflation.

“I do think the falling prices for energy and especially gasoline has a big impact on the measure of inflation this month,” he explained.

Recently the consumer price index for July was released and the price index itself did not change from June to July, which Jansen called “quite uplifting.” He believes this was largely due to energy prices.

However, Jansen doesn’t expect the prices for other items like groceries to go down.

“I think this large decline in the price of gasoline, this large decline in a portion of the consumer price index, I think we may have gotten most of the decline in inflation from those falling energy prices that we’re going to get.”

He believes prices will continue to rise, but not at the rate seen over the past couple of months. Additionally, he expects wages to rise, but just not as fast as prices.

Watch the full interview in the player above.

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