WASHINGTON, D.C. Today, the Bureau of Labor Statistics announced that inflation as measured by the consumer price index (CPI) on all items increased by 3% for the 12 months ending in June—lower than May’s 3.3% rate. Core inflation, which excludes volatile energy and food prices, rose at a pace of 3.3% in June from a year prior (down from 3.4%). Inflation on shelter increased by 5.2% and on food by 2.2%, respectively, over the past 12 months. Real wages increased by just 0.6% for another month.

Patrice Onwuka, director of the Center for Economic Opportunity (CEO) at IWF, issued the following statement:

“Headline inflation rate numbers coming in a little lower than is expected is positive news. Prices aren’t rising as fast on many household items, but frustrating price increases on shelter, in particular rent, and groceries are inescapable expenses straining already stretched household budgets. Americans are pulling back on discretionary spending this summer as their savings are depleted and real wages can’t keep pace with rising costs. Since early 2021, inflation increased 19.3% while wages have risen 16.1%, effectively giving Americans a 3% pay cut through this spring. 

“Policymakers must get off the sidelines and provide economic relief to Americans. They must remove harmful barriers so the private sector can expand the energy supply, housing supply, and income-generating opportunities. Here are three solutions: repeal the restrictions on domestic energy production and delivery, repeal new federal restrictions on self-employment that help Americans supplement their incomes with contract and gig work, and lift onerous regulations that make housing construction such as new homes and accessory dwelling units, costly or nearly impossible. 

“Any policymaker not putting forward a deregulatory agenda that expands these key areas and others are setting the economy for elevated prices for years to come.”

Independent Women’s Forum has a new paper explaining how accessory dwelling units (ADUs) can help to address housing affordability. Read it here.

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Independent Women’s Forum is dedicated to developing and advancing policies that aren’t just well intended but actually enhance people’s freedom, choices, and opportunities.

Independent Women’s Forum’s Center for Economic Opportunity (CEO) aims to educate the public about how government policies impact people’s opportunities for economic development and upward mobility.