How lower inflation rate affects Sacramento-area residents | Call Kurtis
SACRAMENTO – With Wednesday's announcement that the nation's inflation is now at its lowest level in three years, CBS13 and the Call Kurtis consumer investigative team examine it further to learn what it means for us locally.
Have you been noticing lower prices at the gas pump lately?
Rachel Brooks, a married West Sacramento mother with three children, said that cheaper gas means she can buy better food for her husband and sons.
"It does help us because when we try to buy healthy food which can be pretty pricey especially if it's anything organic, that does help," Brooks said as she filled her SUV's tank at a Shell gas station on Reed Avenue in West Sacramento.
Right now, gas prices are down 58 cents per gallon compared with a year ago.
"Oil is now at its lowest level since 2021 and that's keeping gasoline, diesel and jet fuel prices far lower than they've been in recent memory," said Patrick De Haan, GasBuddy's head of petroleum analysis.
Grocery prices are up less than 1% year over year. But, it's much lower than the 13% in 2022.
Overall, annual inflation is up 2.5% – the best numbers since 2021.
The housing industry continues to fuel inflation. And, rental rates are up 5.2% higher in the last 12 months.
"The Fed understands it's time to start cutting interest rates," CBS News Business Analyst Jill Schlesinger said.
The Fed, which pushed interest to a 23-year high to slow the economy and the job market, is expected to drop interest rates next week.
"There is a possibility for a half of a percentage point drop, but I think for the first rate cut in four and a half years, they'll start with a quarter of a percentage point," Schlesinger said.
Brooks, whose husband works two jobs while she works and attends nursing school, said any relief is welcoming.
"We all want to save," she said. "I mean, I understand we're all in different situations. Some of us are paying for school, some of us are paying for medical bills. No matter who it is, though, we all need a little bit of help. Everybody needs a little bit of help. So, whatever is decreased, I'm sure even if it's 10 cents from a gallon, it makes up at the end of the day."
After next week's expected interest rate cut, the Feds could do it two more times, in November and December.
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