Inflation is Slowing, But Not Enough for Fed
The Consumer Price Index (CPI) report revealed a 7.1% rise in prices year over year in November, down from 7.7% in October and the 9.1% peak in June, according to the U.S. Bureau of Labor Statistics. This is the fifth straight month prices have declined, but experts are hesitant to start celebrating too soon.
"Even if inflation is waning, the global economy still faces threats from the rate increases already pushed through," reads an article from CBS News. "The housing industry and other businesses that rely on low interest rates have shown particular weakness, and worries are rising about the strength of corporate profits broadly."
Even with slight improvements in inflation rates, prices are still at historical highs. A survey from Bloomberg showed economists expected a 2.5% fall in the core index by the end of this year—and data shows the index is running two times higher at 5%, according to The New York Times.
The Fed is expected to raise interest rates again tomorrow, but possibly at a less aggressive pace. "The Federal Reserve is expected to respond to persistently high inflation by hiking interest rates half a point on Wednesday," per CNN. "That will mark its seventh and final painful hike of the year, albeit a smaller one than the last four historically high three-quarter point increases."