New data shows year-over-year inflation Was below 3% last month for the first Time since 2021 the Consumer Price Index Rose 2/10 of a percent between June and July the report also says inflation was Up 2.9% over the past 12 months which is Slightly below Economist expectations CBS News senior Business and Technology Correspondent Jolene kend is in Los Angeles with a look at what these Numbers mean so joling what what are Your highlights from this report Essentially this is a strong infl report If you're looking at what the FED is Going to do when it comes to interest Rates and so this came in below wall Street's expectations what economists Were looking for so that means you know Inflation ticking down just a tenth of a Percent is a meaningful thing it adds to The evidence that the Federal Reserve Will probably cut interest rates in just A few weeks at that mid-september Meeting but of course we want to look at The detail so what's driving this tick Down we saw meaningful changes in how Much it costs to buy a used car for Example gas prices are also down those Are good things but we're also looking At monthly costs because even though This number is seen as strong by Wall Street 2.9% for year-over-year inflation It doesn't necessarily mean that it's
Moved very much it's still sticky it's Still stubborn and a lot of people are Still feeling the pinch when it comes to How much they're spending say on car Insurance on rent rent is one of the Biggest drivers of inflation that Continued to rise above that 2.9% level And so that hurts a lot of people when It comes to how much they're paying on a Monthly basis lindsy I want to ask you About that because um you know when we See housing prices in this report are we Talking about just rent or are actually The cost to buy a home also included in This report and what is behind this Increase yeah so let's take a look at Shelter basically rent right rent prices Continue to go up and that drives the Price drives the main headline inflation Number we do know from our previous Reporting that maintaining and owning a Home the cost of that continues to be Very high when it comes to insurance and The price of a home and all of those Factors but that isn't necessarily Tracked by the Consumer Price Index but Obviously this data does lag a little Bit behind when you look at rental Prices so we could see additional Improvement when it comes to next month But overall what we're seeing for Inflation is an encouraging number when It comes to getting those interest rates To come down so if you do want to start
And apply for a new mortgage and getting Get into the housing market for example Or get back in that could be good news Come midt for those mortgage rates yeah A lot of people may be looking to Refinance also before we let you go you Mentioned buying a car not of notable Positive here in this report used Vehicle prices those saw a decline What's going on there yeah we saw used Car prices drop 11% and there's a couple Of reasons why behind that but one of The main ones is that demand is dropping A little bit and so you see prices kind Of normalize also the supply chain over The past several years it's gotten a lot Better over the past few months when it Comes to new car availability and so if You look at the overall you know Landscape if you're looking to replace Your car and you want to buy secondhand Or a used car that this might be a good Time to do so but overall what we're Seeing though is if you're buying a car And you have to insure that car which Everyone does the rate of insurance Continues to go up more than 18% Year-over-year and all of our reporting Shows that the reason Insurance costs Continue to be so high is because labor Costs continue to go up in addition to Parts being hard to source and all of The pieces that come with ensuring a Vehicle all the policies bit being
Written in different states things like That so it's a complicated picture once You get beyond that headline number but Overall strong report but still monthly Expenses very expensive for most people Okay julan Kent thanks for breaking it Down for us thanks Lindsay okay
