Peak inflation in 2022 eroded real wage growth, but earnings have since recovered. Current inflation adjusted wage growth is 1.2%.

Consumer consumption is the lifeblood of the economy. As shown in the top chart, if wage growth exceeds the rate of inflation, Americans' standard of living is maintained. I am optimistic about this metric, as I believe the leading drivers of the 4th Industrial Revolution—AI, IoT, Big Data, and Automation—will boost productivity, enabling workers to increase output and outpace price pressures.

Inflation has steadily declined from 3.7% in 2023 to 2.6% by August 2024. The average rate was 3.2%, showing a consistent drop, with inflationary pressures continuing to ease throughout the year.

Shelter inflation has disinflated from 7% in August 2023 to 5.2% by August 2024. The average inflation rate for shelter over the year remains around 6%.

Food away from home inflation dropped from 6.5% in August 2023 to 4.0% by August 2024, with an average rate of around 5%.

Taylor Swift concerts may have driven the ticket prices up to 3.5%, but inflation shows signs of cooling in August 2024.

Meats, poultry, fish, and eggs inflation rose to 3.2% by August 2024, after a dip earlier in the year. The average rate remained around 1.2%.

Medical care inflation climbed to 3.0% by August 2024, reflecting sustained increases throughout the year. After a dip into negative territory in late 2023, the average rate settled at 1.6%, showing a long-term upward trend driven by persistent demand and rising costs in the healthcare industry.

Fuels and utilities inflation surged to 2.9% by August 2024, reflecting a sharp increase from negative levels in late 2023.

Personal care inflation peaked at 5.9% in September 2023 and gradually decreased, reaching 2.9% by August 2024. The average inflation rate hovered around 4.4% over the year. This decline reflects easing price pressures on goods and services like grooming products, hygiene items, and personal care services, which are measured in this category.

Food and beverages inflation dropped from 4.1% in August 2023 to 2.1%, notably below the 2.6% total inflation rate.

Here's some good news about inflation relief. Streaming media prices are deflating.

The cost of shoes is no longer tearing apart our soles.

Home tech devices continue to cheapen.

For the java lovers the cost of caffeine is with less of a jolt.

Buying an automobile "isn't what it used to be" in more ways than one.

Gasoline prices have declined 10%, this is added relief to all Americans.