For Americans, who have suffered from rising prices over the past three years, there was another promising sign on Wednesday that inflation is declining sustainably.

The consumer price index (CPI), a broad measure of the prices of everyday goods such as food, gasoline and rent, rose 0.2 percent in July from the previous month, in line with economists’ expectations. Year-on-year, prices rose 2.9 percent – the lowest annual reading since spring 2021.

Here’s what the latest inflation numbers from the Bureau of Labor Statistics mean for your household:

Price increases for cell phones, televisions, used cars and more are slowing

The pain of rising prices is likely to be less noticeable for many common purchases. Noteworthy:

Used car prices, notoriously high during the pandemic, slowed 2.3% in July after falling 1.5% in June. The used car index is down nearly 11% year-over-year. Car and truck rentals are down more than 6% compared to 2023.

Mobile phones saw a year-on-year decline of more than 8%. Televisions were down nearly 6%. Smart home devices were down 2.4% and the airfare index fell 2.6% as the summer travel season comes to an end.

Car insurance continues to rise while gasoline prices fall

Car insurance costs have not been this high for 47 years.

Auto insurance prices have risen 18.6% since last July, a move felt nationwide, with the monthly index up 1.2%.

Three consecutive years of underwriting losses meant that insurers paid out more in claims and expenses than they collected in the premiums we paid, leading to the steep increases we are seeing today.

Owning a car has become more expensive overall. The cost of maintaining and repairing motor vehicles rose by 4.6% year-on-year. At the same time, parking fees and tolls were almost 6% higher than in July 2023.

But there was modest good news from the gas pump.

The gasoline index was unchanged on a monthly basis in July, down 2.2% from a year earlier. As of Aug. 14, the national average price of gasoline was $3.45 per gallon, down 10 cents from a month ago, according to AAA data.

Read more: Tips for cheap car insurance in 2024

Some prices on the supermarket shelf are cool

Price increases in the food retail sector are – at least in part – easing. The food index rose by only 1.1 percent year-on-year and by 0.1 percent since May.

The foods that took the longest to cool included ham, potatoes, rice and apples.

Some foods, however, remain stubbornly expensive. Frozen juices and beverages rose more than 19 percent year over year, and beef products are becoming increasingly expensive. Ground beef rose 4.2 percent year over year, steaks 3 percent and roasts 7.5 percent. That translated to an average price of $7.63 per pound for raw beef roast, according to data from the Federal Reserve Bank of St. Louis.

Eggs, another product that saw price increases due to the pandemic, rose 5.1 percent compared to June and 19.1 percent compared to the previous year.

While food prices are less volatile overall, consumers are still feeling the effects of inflation. Restaurant meals are up 0.2% compared to June and 4.1% compared to a year ago.

Elderly care and other health costs continue to rise

Even though inflation is declining overall, the increase in costs, which is largely borne by seniors, is cooling off more slowly.

Home health care costs for elderly or disabled family members fell slightly from the previous month but were still more than 9% higher than a year ago, the BLS found.

Hospital and related services were up 6.1% year-on-year. Inpatient hospital services also increased by 6.1% and outpatient services by 5.4% year-on-year.

At the same time, prescription drug costs rose 2.5%, while over-the-counter drug prices rose nearly 4% year-on-year. However, compared to June, both indices remained relatively unchanged.

What happens next?

The new reading means headline inflation is below 3% for the first time in more than three years. Although inflation has fallen significantly since its peak of 9.1% in June 2022, it is still above the Federal Reserve’s 2% target.

Investors are betting that the key interest rate will be cut by a quarter of a percentage point at the Fed meeting in September – and some Fed observers even consider a cut of half a percentage point to be possible.