We’ve all felt the insurmountable pressure that’s come from sky-rocketing inflation this year, but there’s a small sign of relief as the consumer price index fell more than expected in November. Back in October, we saw the consumer price index peak at 7.7%. November settled in at 7.1%, according to the Labor Department.
Many Americans are feeling the strains that come from record-high inflation but the new data offers some hope that a downward trend may ease the financial burden many are experiencing. The Federal Reserve has continually raised interest rates by .75%, risking sending America into a full-blown recession. The slight cooling is not likely to alter their plan to continue increasing interest rates, but it may offer the Fed the opportunity to throttle increases a bit. Central bankers will also review their projections for 2023 and investors expect that bankers may opt for a quarter-point adjustment.
Chief Economist at Pantheon Macroeconomics, Ian Shepherdson said,
“The overall picture is definitely improving. It’s unambiguously good news, but it would not be fair to say that inflation is falling everywhere — there are still pockets of big increases.”
The cost of daily living has many Americans looking to the gig economy and budgeting carefully. Though the price of increase on produce has decreased a bit, grocery bills are still at a record high. Rent prices also continue to increase, causing many to reevaluate their living situation and even downsize. The cost of rent is 7.9% higher than it was in November 2022, resulting in the fastest increase in 40 years.
There is some good news to be found, as used car prices are predicted to continue to decline as the rising cost of car loans deter many would-be buyers. Some economists also predict that the massive wage gap may slowly improve as companies pause hiring and expansions for the time being. Supply chains continue to improve, finally tackling the increase in demand for goods that erupted from the start of the pandemic in 2020.
The consumer price index has risen 8.2% over the last 12 months and unfortunately affects the things we all need to survive, like food, gasoline, and shelter. Though November’s cooling trend is welcomed, the 7.1% reading is still quite uncomfortable compared to the steady 2% held before the Covid-19 pandemic.
Is relief on the way or will we soon tick upward again? We’d love to hear your predictions.