The United States has reduced interest rates under the belief that inflation has eased, but many residents in the country continue to find themselves at odds as prices of some goods remain at high levels.
In recent years, the U.S. Federal Reserve has raised interest rates aggressively to drive down upward price spirals driven by pent-up demand after the pandemic.
Consequently, some prices have decreased. Used vehicle prices, often an early inflation indicator, have fallen by almost 11 percent. Smartphone prices have also seen a decline, albeit more modestly. Additionally, the price of apples dropped by over 14 percent in the last year.
However, inflation has had a lasting impact on certain sectors of the economy. In July, the cost of eggs was approximately one-fifth higher than a year earlier. Motor vehicle insurance saw a similar increase, while streaming subscriptions prices surged by over eight percent.
TV and movie streaming service Disney+ raised its monthly ad-free subscription by 27 percent last year and plans another increase of over 14 percent in October.
Faced with the current economic situation, many U.S. residents have changed their spending habits.
"I am cutting those streaming services. Those extra streaming services are the first thing I'm cutting for the most part," said a resident in Maryland.
"I'm not buying much clothes," said another resident.
"Things that I normally would buy, maybe I didn't buy. I mean, like, bacon, when I saw the prices going up that did kind of change a little bit. But I just stopped and started eating properly," said a Maryland resident.
Fed perceives cooling inflation, yet many grapple with high prices
Fed perceives cooling inflation, yet many grapple with high prices
