Inflation impact on Central Valley as Labor Day weekend nears

FRESNO, Calif. (KFSN) -- Prices at the pump are dropping, which is helping bring down inflation.

Gas Buddy is reporting that the Fuelmart off Shaw and First has the cheapest gas in Fresno.

Average gas prices in the city have dropped about six cents per gallon in the last week.

However, many budgets are still being strained across the country.

This is something people should expect until the end of the year.

On Friday, Federal Reserve Chair Jerome Powell said inflation has peaked but there's no sign of a decline.

He expects the central bank to keep raising interest rates at least three more times, saying it's the "unfortunate cost to reducing inflation."

The cost of groceries and housing will continue to climb.

Those with credit cards, car payments and loans, expect all of that to get more expensive.

Chairman Powell says it's going to cause pain to the US economy, but adds a failure to restore price stability would mean far greater pain in the long run.

Investors sent the Dow plummeting more than 1,000 points last Friday, following Powell's remarks.

The next significant read on the economy will be Friday when the Labor Department releases its August job report.