Inflation drops significantly in May, food prices remain high

Elaina Athans Image
Tuesday, June 13, 2023
Food prices remain high amid news that inflation dropped in May
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One thing helping bring inflation down is lower gas prices, expert says.

Darlene Hicks did a double take on a recent grocery store trip

"Eggs were $7.25," said Hicks. "I was real careful taking it to the register, I'm like here these are golden eggs.

Shedid end up purchasing the pricey carton, but was surprised that the newly released inflation report shows inflation dropped significantly in May.

Hicks is waiting for that trickledown effect on her household staples. Items like fruits and vegetables are still increasing.

"I am not feeling it (with my bill)," said Hicks.

It was around this time last June the inflation rate hit its highest level in four decades, soaring to 9.1 percent.

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The Federal Reserve signed off on a number of interest rate hikes since then to get inflation under control. The percentage is now closer to the goal of two percent.

The Federal Reserve will meet again Wednesday and it remains to be seen if there will be another increase.

One thing helping bring inflation down is lower gas prices.

The average price for a gallon of regular in North Carolina is $3.31, which is about 28 cents below the national average and at least a $1.35 less than what we were paying at the pump at year ago.

GasBuddy Head of Petroleum Analysis Patrick De Haan is says gas prices should remain low through the summer.

"A year ago yesterday was the first day that the national average ever hit $5 a gallon," he said.

De Haan doesn't expect a surge of summer road trips even with these low prices.

"That's usually not something that you'd expect -- lower price, lower demands -- but again against the back pressure of interest rates going on, Americans have slowed down their consumption and spending, which is leading to less gasoline demand and lower prices," said De Haan.

Derrick Sweat is pulling back on road trips. He basically used to go to South Carolina every other week to visit his parents.

"My mom and dad are like 'We know. We know what's going right now.' Gas prices aren't always the friendliest," said Sweat.

RELATED: Americans waste $218B in food each year; officials hope to change that with new food date labels