ATLANTA (WSAV) — Lawmakers in Washington will meet to talk about the Inflation Reduction Act.

It cleared the senate and was passed by the House on Friday, which would reduce drug costs, increase corporate taxes and combat climate change.

The U.S. Department of Labor Statistics released its latest report on consumer prices, comparing the South with the rest of the country.

Experts say inflation levels are slowly cooling down, and this is the largest 12-month increase since 1979, especially in the South. The Consumer Price index report for July shows the South saw a 12% increase over the last year, higher than the national average of 8.5%.

“A slowing economy and slowing down demand. Consumers are slowing down with growth so that brings prices down and supply chain issues that are being solved,” said Ray Hill, professor at Emory University, Goizueta Business School. 

While food and home prices rose by 1% over the last month, over the past year, the South saw food prices go up 10% and housing up by 11%.

“We see inventory going up in random places, chip industry is going up because of the slow down in chips,” Hill said. “I think in other parts of the economy, demand is slow, so inventory builds up and that can moderate price increase.”

Experts say the numbers in the South are higher due to gas prices, shelter and food costs. But the good news is, as of July, the cost of flights, clothing, used cars and gas all dropped.

“I expected the total CPI drop because of the lower cost of gasoline. The only prices going down are housing and energy,” Hill said. “We think this economic momentum will carry to next year and the next few months with inflation going down, gas prices going down.”

The CPI index shows energy costs rose 33% in the last year, and food costs are up 11% over a 12-month period.

The biggest price jump in the South was the cost of transportation at a soaring 17%.

The Department of Labor says the U.S. inflation levels hit a 40-year high due to worker shortages, supply chain bottlenecks, port delays and a shut down of facilities—which caused the increase of several items.

The next Consumer Price Index report releases on Sept. 13.