Inflation plunged to 7.1% in sign economy may escape the worst

[mystery-ak]

Inflation plunged to 7.1% in November in sign economy may escape the worst
by Zachary Halaschak, Economics Reporter |
December 13, 2022 08:31 AM

Annual inflation slowed to 7.1% in November, the Bureau of Labor Statistics reported Tuesday, a sign that the price pressures that have wracked the economy over the past year are easing.

The much-anticipated numbers revealed that, while inflation is still excruciatingly high, it is starting to cool in response to the Federal Reserve's aggressive interest rate hikes. Inflation had been 7.7% the month before.

While there had been some question about whether the trend of monthly declines in the all-items inflation rate would continue, Tuesday’s report marks five straight months of declines in annual inflation after the rate peaked at a whopping 9.1% in June.

“It’s important to remember that prices are still rising. Inflation remains too high and the Fed remains nervous. Even as prices moderate, they're still much higher than pre-COVID levels,” Victor Claar, associate professor of economics at Florida Gulf Coast University, told the Washington Examiner. “While consumer prices are moderating, the Fed can't relax because of persistent tightness in the labor market.”

more
https://www.washingtonexaminer.com/policy/economy/inflation-drops-to-7-1-in-november-as-price-pressures-ease

[Free Vulcan]

Inflation plunged in '80 too, followed by the brutal Rust Belt recession. This may not be a good sign.

[Wingnut]

Call me when Eggs bread and butter prices revert to pre-Biden prices.

[mystery-ak]

Another version

December 13, 2022 8:31am EST
Inflation eases more than expected in November to 7.1%, but consumer prices remain elevated
Inflation still about three times higher than pre-pandemic average

By Megan Henney FOXBusiness

Inflation moderated more than expected in November, but consumer prices remained near a multi-decade high, continuing to squeeze millions of U.S. households and small businesses.

The Labor Department said Tuesday that the consumer price index, a broad measure of the price for everyday goods including gasoline, groceries and rents, rose 0.1% in November from the previous month. Prices climbed 7.1% on an annual basis. 

Those figures were both lower than the 7.3% headline figure and 0.3% monthly increase forecast by Refinitiv economists,  a potentially reassuring sign for the Federal Reserve as it tries to tame runaway inflation with a series of aggressive interest rate hikes. It marked the slowest annual inflation rate since December 2021.

In another sign that suggests underlying inflationary pressures in the economy are starting to slow, core prices – which strip out the more volatile measurements of food and energy – climbed 0.2% in November from the previous month, down from 0.3% in October. From the same time last year, core prices jumped 6%.

more
https://www.foxbusiness.com/economy/inflation-eases-more-expected-november-consumer-prices-remain-elevated

[catfish1957]

More governmental bullshit.  Of recent, outside of energy costs, there is no reason to see or believe that inflation is abating.  In fact, I see signs of acceleration.  AND...   just wait and see what happens after the Rail Union tacks on their next surcharge to the Supply Chain.

[rustynail]

Our Joe to the Rescue!

[mountaineer]

Plunged? Plunged? 

[DefiantMassRINO]

Fuels prices have moderated; food prices have not.

[Wingnut]

Fuels prices have moderated; food prices have not.

Yup, Gas has.  But diesel that fuels the trucks that deliver the goods still remains sky high.

[mystery-ak]

Gone In November? US Inflation Growth Slows To 7.1% YoY, Real Hourly Wage Growth “Improves” To -1.9% YoY (Fuel Oil UP 65.7%, Food At Home UP 12%)

https://confoundedinterest.net/2022/12/13/gone-in-november-us-inflation-growth-slows-to-7-1-yoy-real-hourly-wage-growth-improves-to-1-9-yoy-fuel-oil-up-65-7-food-at-home-up-12/