Thursday, February 20, 2025

Why do prices feel high if inflation is down?

Inflation is down, but three in four Americans are still concerned about coming price increases.


Inflation has eased since a 2022 peak, but an estimated three-quarters of American adults are still concerned about coming price increases. While the inflation rate has dropped to 2.9% as of December 2024, Americans are feeling the lasting impact of a historic spike.

How is inflation trending?

After rising to a 40-year high of 9.1% in June 2022, the inflation rate trended down for much of 2023 and 2024, falling to a low of 2.4% in September 2024 before ticking up over the next few months.

The declining inflation rate means prices have been rising at a more gradual pace, and this can in turn mean less stress on consumers.

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