Kansas consumers wondering if more cost adjustments will reflect slowing inflation

WICHITA, Kan. (KWCH) – News early Tuesday morning has economists applauding as a new Consumer Price Index (CPI) report shows that inflation is slowing. The question for many across Kansas and the U.S. is whether the positive trend will be reflected with cost adjustments in their favor.

That latest CPI report shows a slight drop in inflation from October to November and lower inflation compared to last year’s high of 9.1%. In the Wichita area, while the report says inflation is slowing, several people who spoke with 12 News Tuesday said they haven’t seen costs drop much, if at all.

So, if prices haven’t fallen, what’s slowing inflation? The big change causing lower rates is in energy. After reaching higher prices this summer, gasoline prices continue dropping and energy prices at home are leveling off.

This is helping consumers but its effects haven’t reached other sectors. For example, prices are still rising in the service industry. If you go out to eat, it will cost you less to get there but once you’re at the table, prices may be higher.

Wichita State University Center for Economic Development and Business Research Director Jeremy Hill said while change is slow, we are headed in the right direction.

“I think Kansas and Wichita look so much better and there’s less risk here than we’ve had in the past, so that’s the good news, and it’s good news for today and good news for the next several months, next year or two,” Hill said.

Hill said high prices this summer got more people into the habit of saving more money, which, he said, may allow them to spend more this holiday season.

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