South Florida consumer prices bucked the national trend in August.
New data out today Thursday shows the regional inflation rate fell between June and August thanks to slower increases in food prices. Nationwide, the Consumer Price index rose 0.4% from July to August.
The regional inflation figures are released every two months. The national measurement is monthly.
The regional slowdown in price increases does not mean the inflation rate is more comfortable for consumers, though.
The South Florida annual inflation rate was 2.5% in August. While slower than the June figure, it continues to represent a stubborn local inflation rate.
Housing continues to contribute to the rate, as do the prices of everyday services including healthcare. Clothing prices, especially, have risen sharply along with used cars and trucks. This may be due to tariffs imposed by President Donald trump on imported clothes and consumer demand shifting to used vehicles to avoid the new tariffs on foreign cars.
Drivers are not experiencing much difference in gas prices, though. Pump prices are flat from earlier in the summer and down 9% from a year ago. That has helped ease inflation pressure overall.
The Federal Reserve is scheduled to meet Tuesday and Wednesday to discuss interest rates. It is widely expected to cut rates in response to a slowdown in the national job market.
The central bank is charged with working to keep unemployment and inflation low. It raised interest rates in 2022 and 2023 to combat inflation. It last cut its target short-term borrowing rate last fall as inflation eased.
Florida’s employment market appears to be holding up as signs appear of a slowdown in hiring nationwide. First-time unemployment claims have fallen in each of the past eight weeks. Nationally, unemployment filings increased 4% to begin September. Unemployment claims data can be a signal of lay-offs and seasonal hiring and firing among companies.
Florida’s unemployment data for August is due to be released Sept. 19.
