Americans are taking the good with the bad. Data from the U.S. Bureau of Labor Statistics out Tuesday shows the rate of inflation eased slightly in August and is down from a 40-year high in June. But prices are still historically high, especially for everyday needs like food and shelter.
"It looks like, maybe, inflation might have peaked in June. That makes sense because if you think about it that's when we saw gas prices tick up over five bucks," says CBS News Business Analyst Jill Schlesinger.
Gas is now about 25 cents cheaper per gallon than it was a month ago. Many households are directing those savings toward food prices, up 11.4% over last year and the highest since May of 1979. Shelter costs are up 6.2% from a year ago.
"The whole place is the bedroom," says Gerri Weinberger of her New York City studio apartment. Her landlord is raising the rent from $1833 to $2500 a month, with no room for negotiation. "I expected it to be raised, but not that much. And then to worry about ‘where am I’... I have to go through the process again of where am I going to live."
Experts say as the housing sales market cools - in the form of higher mortgage rates, fewer cash offers, and tapering home prices - the rental market should follow suit.
How we feel about inflation can also affect prices. A New York Fed survey from August found consumers expect inflation to fall further in the short and long term.
The Federal Reserve is committed to lowering inflation and another rate hike is expected at next week's meeting.
"If you have a strong labor market - which we still do - and we have prices on the rise, it gives the Fed the ammunition to go and attack inflation, even if it slows down the hiring a bit," says Schlesinger.
Treasure Secretary Janet Yellen says it's a delicate balance to avoid a recession. "The Fed is going to need great skill and also some good luck to achieve what we sometimes call a soft landing," says Yellen.
Economists warn it's a marathon, not a sprint, back to prices anywhere close to pre-pandemic levels.