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The Texas economy is slowing while inflation rises, Dallas Fed analysis shows

The exterior of the Federal Reserve Bank of Dallas.
Christopher Connelly
The Federal Reserve Bank of Dallas on Pearl Street.

The inflation rate tracked by the Federal Reserve Bank of Dallas was at 4.7%, up from 4.5% in July.

The Texas economy is slowing while the average12-month inflation rate is rising, according to the Federal Reserve Bank of Dallas.

The Dallas Fed says the inflation rate it uses -- Trimmed Mean PCE -- was 4.7% in August, up from 4.5% in July.

It also said there are signs the state’s economy is slowing, adding in a press release that a “once torrid pace of job growth ground to a halt in August.”

Dallas Fed vice president and senior economist Pia Orrenius was more specific.

“July job growth, month over month, was 7.6% and then we went to zero in August,” Orrenius said. “It was kind of shocking.”

Orrenius also noted firms have been reluctant to raise prices. That could be a sign inflation is peaking.

Despite the Dallas Fed’s recently reduced job numbers, it still projects job growth to exceed 4% for the year. That’s twice the historical average.

In surveys, Texas businesses said they were expecting a more typical economy after last year’s rapid growth and rebound from the pandemic-induced recession. But that’s no longer the case, according to the Fed report.

Got a tip? Email Reporter Bill Zeeble at You can follow him on Twitter @bzeeble.

Bill Zeeble has been a full-time reporter at KERA since 1992, covering everything from medicine to the Mavericks and education to environmental issues.