Inflation Falls in December, Continuing Its Cooling Trend – By Tim Smart (US News) / Jan 12, 2023
The drop was in line with estimates but may not be enough to convince the Federal Reserve to stop raising interest rates.
Consumer prices fell in December, continuing the recent slowing of inflation from the heights reached last summer, the Bureau of Labor Statistics reported on Thursday.
The consumer price index fell 0.1% from November, hitting an annual level of 6.5%. That was the smallest annual rate of increase since October 2021. The core index, leaving out food and energy, rose 0.3% for the month, bringing the yearly rate to 5.7%.
The numbers were in line with expectations and driven largely by a 4.5% decrease in the price of gasoline.
The Federal Reserve has been raising interest rates at a record pace to bring inflation down closer to its 2% annual goal. After a string of 75 basis point hikes, the central bank moderated the pace in December with a 50 basis point increase and analysts believe it will step down further to 25 basis points in February.
