July inflation numbers encourage economists

(ABC 6 News) – Good news from the bureau of labor. Even though went prices up 8.5 percent in July, that’s down from June’s numbers of 9.1 percent. Giving consumers some much-needed relief.

"I live within my means, I budget every day you know, but now since gas prices went down and things are getting better. You know I’m a little better off now, said Missy Jadack of Rochester.

Jadack says she is saving anywhere she can, including at the pump. The gasoline price index fell seven point seven percent in July, making things easier on the wallets.

But things like food, shelter, and other essentials have increased in price last month. Jadock adds, "It’s been a struggle for me because I have to work more and have to provide for my family and the grandkids."

Jadack has had to take on three more jobs in the past year just to make ends meet

Father of four Luis Rocha says having a plan before he buys is what others should do as well. "Just planning right, putting money where you’re supposed to and not um feeding into luxury costs that are unnecessary," said Rocha.

The consumer prices index report also shows things like retail are also starting to trend down. While July numbers are encouraging to consumers, economists say it may be too early to tell.

We do believe it’s in the process of peeking. We do think it will flatten out and then we expect it to decline from here. We’re encouraged by what we’re seeing," said Matt Peron the director of research at Janus Henderson Investors.

Some other positive economic news as a country we added 528,000 jobs last month dropping the unemployment rate to three and a half percent. Which falls below the natural unemployment rate so according to how economists measure unemployment, the United States economy is operating fully employed.