The downward trend in inflation continues in the States, with the rate dropping to a modest 3.1% in November. This decline was primarily fueled by a significant decrease in fuel prices, which saw a 6.0% drop compared to the previous year. Despite this drop, consumer prices did slightly increase by 0.1% compared to October, surpassing analysts' expectations for price stability.
The core inflation rate, excluding food and energy prices, remained constant at 4.0%, marking a low point not seen in over two years. Consumer prices soared in the U.S. last year, much like in many other countries, attributable to impacts from the coronavirus pandemic and the Russian war on Ukraine.
Starring down inflation rates above 1% for an extended period has sparked concerns among some economists, raising doubts about the stability and growth of the economy. Yet, the latest data marks a reduction in inflation, offering some relief for American households and businesses.
The U.S. Federal Reserve is slated to make a crucial interest rate decision on Wednesday, aiming for an inflation rate of 2%. Although analysts forecast the Fed to keep rates unchanged, the debate around its monetary policy's impact on the economy rages on.
- Inflation trends over a three-month period show a steady decline, with various sectors witnessing a drop.
- The Labor Department announced inflation figures for November, demonstrating a slight improvement compared to the previous month.
- Rising inflation has emerged as a significant concern for policymakers in Washington, given its impact on household budgets and consumer spending.
- Inflation in the U.S. has been a hot topic, raising questions about the long-term implications for the economy.
- The recent drop in the inflation rate in the U.S. has given rise to calls for the Fed to reassess its monetary policy, potentially bringing about a reduction in interest rates.
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- Energy costs rose a meager 1% year-on-year in January 2025, with gasoline and natural gas prices increasing while fuel oil decreased. This was followed by a rebound in used car and truck prices, as well as a 8% surge in transportation costs.
- Core inflation unexpectedly rose to 3.3%, even as food and shelter inflation remained steady and slow.
The Fed maintains a cautious stance on monetary policy, acknowledging the issue of elevated inflation and its commitment to achieving its dual mandate of maximum employment and inflation at 2%. The committee will continue to monitor incoming data and make adjustments as needed.
