inflation in The United States slowed down again last Month in The latest sign that price The increases gradually cool down despite the stresses they continue to cause on American families.
Consumer prices increased by 7.1%. in november of a year In the past, it was government He said Tuesday. that was down from 7.7% in October and the last peak of 9.1% in Jun. This was the fifth consecutive slowdown.
On a monthly basis, consumer price The index rose just 0.1% in November, down from 0.4% in October.
until with last More facilitation during the month of Inflation, Federal Reserve (Fed) plans to continue raising interest rates. On Wednesday, the Fed is set to enhance its standard rate for This is the seventh time yeara move It will increase borrowing costs for consumers and businesses. Economists have warned about this in Continue to tighten credit to fight Inflation, likely the Fed cause recession next year.
Tuesday government The report showed that inflation in November slowed down by less expensive Gasoline, electricity and used cars, among others items.
I started many trends reduce price Although the pressures probably won’t be enough to bring about headline inflation back down to the levels Americans have ever been accustomed to soon.
The national modified for gallons of regular Gas is down from $5 a gallon in June to $3.26 of Monday. Many supply chains have it also Not confused, help reduce costs of Imported goods and parts. the prices for Wood, copper, wheat and other commodities have declined steadily, which tends to be the case lead To reduce construction and food costs.
For some economists and Federal Reserve officials, those numbers are a no brainer sign of improvementdespite inflation remains Well above the mean bank’s 2% annual target and may not reach it until 2024.
Fed Chairman Jerome Powell said he’s keeping an eye on it price trends in Three different classes best potential understanding path of Inflation: commodities excluding volatile food and energy costs; housing that includes rents and cost of house ownership And services, except for housing, such as auto Insurance, pet services and education.
In a speech he gave two weeks ago in Washington, Powell noted that there were some progress in Reducing inflation in Goods and housing but not in most services. material goods like Used cars, furniture, clothing and appliances are steadily becoming less and less expensive since summer.
used car Prices increased by 45%. in June 2021 comparison with a year Earlier, they had fallen for bone of this is year.
Housing costs, which makes up Almost a third of consumer price Index, still rising. But real- Time procedures of Apartment rents and home Prices started drop distance posted zoom price Acceleration on the rise of epidemic. Powell said those declines are likely to show in government data next year And the should help reduce total inflation.
However, Powell suggested, costs for services are likely to remain persistently high. Partly because of the sharp increases in Wages have become key contributes to inflation. service companies, like Hotels and restaurants, in particular, are labor intensive. And the with Average wages are growing at a rate of 5%-6% a year price pressures keep building in this sector of The economy.
Service companies tend to pass on some of they higher labor costs to its customers by freight more, thus perpetuating inflation. high salary also fuel more consumer spending that allows companies to raise prices.
“we want fares to go up Powell said, “But they have to go up at a consistent level with 2% inflation over time.”
On Wednesday, the Federal Reserve is expected to raise its rate key short-term rate by a half-point, after four consecutive three-quarter point increases. would leave his standard rate in a range of 3.75% to 4% highest level in 15 years.
Economists expect the Fed to slow further rate walking long distances next yearand with quarter point increase in February and March if inflation remains Relatively faint.
