March 29, 2023
Economy International

December Inflation Report Reveals Continued Cooling of Prices in the US

Report Reveals Continued Cooling of Prices in the US

The US inflation report for December, released on Thursday morning, offers another evidence of a gradual decline in the recent survey inflationary trend that has persisted for more than four years.

The report presents a mixed picture. While some experts believe that it will confirm a continued cooling trend in inflation, others think it could indicate that inflationary pressure remains strong enough to warrant more forceful measures by Federal Reserves. However, most economists expect the report to portray a continued decline in inflation, although it remains above comfortable levels.

As per the survey by FactSet, economists predict that consumer prices increased by 6.5% in December compared to the previous year, which is a decrease from 7.1% in November and well below the 40-year high of 9.1% in June.

On a month-to-month basis, economists predict that prices were flat in December. Another closely watched gauge of core prices, which excludes volatile energy and food costs, is expected to have risen just 0.3% from November to December and 5.7% from a year earlier.

The Federal Reserve closely tracks core prices as it sees them as a more accurate indicator of future inflation in setting its interest rate policies.

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