ATLANTA (WSAV) — Analysts say after hitting a 40-year peak, inflation levels are finally trending down.

However, in the southeast, the U.S. Bureau of Labor Statistics released its latest consumer price index report, which shows costs have gone up nearly 12% over the last year.

The new consumer price index report shows food prices went up 3% and housing costs soared 13% over the last quarter, in the southeast.

“Everything is going up — food is going up the most, and shelter is going up and annual basis is like 20%,” said Ray Hill, Emory University Business Professor.

Data shows energy costs dropped 10%, gas prices plummeted 20% and transportation costs went down slightly by 5%.

“What’s more driving this is not people’s voluntary decisions of buying less of this because prices are going up,” Hill said. “It is that inflation is eroding real wages so we see real wages fall and people are going to cut back on expenditure because of their purchasing power in the pocket anymore.”

Experts said with a potential interest rate hike, hold off on large purchases until next year.

“Some goods are going down, disposable products, nondurables but we are seeing durables like automobiles, homes are quite high and interest rates don’t help,” Reshma Shah said. “It is not a good time to buy homes like appliances.”

Economists said Savannah’s port is already at a record high backlog – so if there are further interruptions, like last week’s potential rail strike, it ultimately impacts the consumer with higher prices.  

Economists say 40% of goods are transported through trucks while 30% through rail.