The prices of consumer goods increased this past month, The Wall Street Journal (subscription) reports. According to the Labor Department, the consumer price index increased in July by 0.6%—the second month in a row of upward momentum.
Still, economists think that the increase is primarily a return to form, after the COVID-19 pandemic initially drove prices to artificially low levels. A rise in gas prices fueled about a quarter of the increase, along with the cost of clothes and used vehicles. On the other hand, grocery costs went down as millions of Americans ventured more confidently outside of their homes.
Economists also don’t see a risk of either sharp inflation or sustained deflation. Instead, they’re banking on some fairly gentle inflation that doesn’t cause any real alarm.
And speaking of alarm . . . The U.K. is feeling less than chuffed as its economy recorded the worst recession of any of its fellow world powers, according to U.S. News and World Report. The British economy fell behind countries like Germany, France and the United States, contracting by more than 20%, its largest drop on record.