Consumer prices decline, raise hopes

Federal Reserve Building

The Labor Department reported Thursday that inflation declined from 7.1 to 6.5 percent in December, making it the sixth straight month of decline for inflation.

The report also showed the first month-to-month decline in consumer prices since May of 2020.

Why is this raising hopes? The report indicates that inflation is on a sustained downward trend, meaning the United States might be over the worst of what has been its worst bout of inflation in roughly 40 years.

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The report may also encourage the Federal Reserve to ease back on, or even entirely pause, its campaign to raise interest rates even further.

This story originally appeared in WORLD. © 2023, reprinted with permission. All rights reserved.

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