Inflation Higher than Expected; Food Prices up 11.4% Over Last Year

The annual inflation rate in the U.S. eased for the second consecutive month in August, to 8.3%, the lowest reading in six months but missing economists’ forecasts of 8.1%, according to the report from the U.S. Bureau of Labor Statistics on Tuesday (Sept. 13). The decline follows July’s 8.5% and 9.1% in June, the highest reading in 40 years.

The decrease was helped along in part by falling gasoline prices, which have declined for 91 days in a row, going from a peak of $5.02 on June 14 to a national average of $3.71 per gallon of regular unleaded, according to AAA data on Tuesday.

The food index increased 11.4% over the last year, the largest 12-month hike since May 1979. The energy index rose 23.8 percent over the past 12 months. The index for electricity rose 15.8%, the largest 12-month increase since August 1981.

Airfare declined, as did prices for used cars, but the cost of housing continued to increase, as did food prices and costs for numerous goods and services, according to the monthly report.

See also: Rising Card Delinquency Rates Spotlight Paycheck-to-Paycheck Pressures

Credit card delinquencies are on the rise as people struggle to juggle budgets from paycheck to paycheck, according to a PYMNTS report.

Synchrony Bank reported the percentage of loans at least 30% past due, as a percentage of period-end loan receivables, stood at 3.1% at the end of August, up from 2.3% last year and 2.9% at the end of July.

Discover Financial Services reported that the delinquency rate, at 30 days or more, was 1.8% at the end of July, up from 1.4% last year.

Read more: New Survey Shows Consumers Less Optimistic Than Fed on Taming Inflation

The PYMNTS report “Consumer Inflation Sentiment: Inflation Slowly Ebbs, But Consumer Outlook Remains Gloomy,” shows that 70% of respondents are cutting back on nonessential retail spending to cover basic needs like food, fuel, and housing.

Related: Inflation Increasing Consumer, Merchant Use of Digital Payments