Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business Finance

Inflation in the US eased unexpectedly in November

Despite hearing murmurs of an incoming recession due to inflation, along with big tech layoffs, the consumer price index relaxed in November.

person counting money representing inflation

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.

Advertisement. Scroll to continue reading.

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.

Advertisement. Scroll to continue reading.

Jennifer is a native Houstonian (go Astros!) with a knack for creating digital works of art. She has expansive experience creating content and branded collateral for Fortune 500 companies, as well as small local businesses. When she’s not buried in her laptop, Jennifer is the marketing director for a world championship circuit barbecue cook off team and pet mom to dog (Milo) and Guinea pig (Piggy Smalls).

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

Many are feeling hopeful after seeing the latest Consumer Price Index report stating inflation eased up, and the crypto world rejoices.

Business Entrepreneur

There is no such thing as being totally inflation-proof in your business, but there are more ways to prepare.

Business Finance

The talks of a foreboding recession is not just amongst common folks. Execs and economists agree something is brewing.

Business Finance

The CPI spikes much higher than economists had expected, marking a 40-year high. With price jumps across the board, what's next?

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.