The Consumer Price Index landed below 3% for the first time since 2021, CNN reported Aug. 14.
Eight notes for dental leaders:
1. Consumer prices increased by 2.9% over the last 12 months, according to the Bureau of Labor Statistics' Consumer Price Index published Aug. 14.
2. The decreased inflation will allow the Federal Reserve to cut interest rates next month and reduce borrowing costs to support job growth.
3. Indexes that increased in July include shelter, education, recreation and personal care. Indexes that saw decreases over the last month include medical care, airline fares and apparel.
4. The price of dental services specifically rose by 5% between July 2023 and July 2024, with a 0.1% increase between June and July of this year. Seasonally adjusted rates show no changes between May and June of 2024, and a 0.3% increase between June and July of this year.
5. The positive inflation news comes after a "weaker-than-expected" jobs report was released, showing only 114,000 jobs added and a 4.3% increase in unemployment, CNN reported.
6. Federal Reserve Chair Jerome Powell said rate cuts could happen as soon as mid-September.
7. Most economists are expecting a quarter-point cut in September and similar cuts in November and December, ABC News reported Aug. 14.
8. Inflation and high interest rates have led dental practices to struggle financially and some DSOs to adjust growth strategies over the last couple of years. However, many DSOs are preparing for a more active market during the latter half of 2024 thanks to a brighter outlook on the economy.