Increasing signs that price pressure is easing suggest that June’s alarmingly high increase in consumer prices of 9.1% will probably be the peak. But even if inflation actually falls, economists see a slow decline.
Ed Hyman, chairman of Evercore ISI, pointed to many indicators that 9.1% may have been the peak. Gasoline prices have fallen about 10% from their mid-June high of $5.02 a gallon, according to AAA. Wheat futures prices have fallen 37% since mid-May and corn futures are down 27% since mid-June. The cost of shipping goods from East Asia to the US West Coast is 11.4% lower than a month ago, according to Xeneta, a Norway-based transportation data and procurement firm.