Sept. 28, 2022

Inflation eased somewhat in August, and city sales tax revenue stayed just slightly ahead of it.

That’s according to the city’s most recent financial report, which includes receipts for August that reflect actual sales in July.

At 8.3 percent, inflation is being driven by the energy sector and increased cost of food.

“I think the big concern here, though, is really looking at the food number,” director of finance Shawn Pritchett said, noting it’s the biggest 12-month increase since May 1979.

City sales tax revenue was up 8.9 percent in August, which is “barely keeping up with inflation,” Pritchett continued. “You’ll continue to see that line, the 12-month-line rolling average, come down over the next several months, coming off the big gains we experienced last year.”

By industry, business services and manufacturing drove most of the tax revenue increase in the past month, while home furnishings fell for a second consecutive month compared with an exceptionally strong 2021.

The city also saw “a little bit of softness” at eating establishments, “which is a little surprising because that’s such a strong part of the entertainment tax, which actually did perform better,” Pritchett said.

Entertainment tax revenue was up 10.3 percent for the month and 20.7 percent on a 12-month rolling average.

After an up-and-down ride for the past year, the lodging tax settled at a 2.6 percent increase for the month.

“You’re going to see more stabilization in these figures going forward,” Pritchett said.