January 12, 2023
Inflation is quickly moderating. Obviously, it’s still painfully high, but it’s quickly moving in the right direction.
Chief economist at Moody’s Analytics, Mark Zandi, on new data reflecting the price of goods and services in the U.S. during December.
Why It Matters: The Consumer Price Index (CPI) measures a mixed basket of costs of goods and services in the U.S. and is used as an important gauge of inflation (high inflation = your dollar buys you less). While the costs of goods and services in December slightly decreased from the previous month, Zandi said: “I see nothing but good news in the report except for the top-line number: 6.5% is way too high.” (Usually, economists like to see this number around 2%).
A significant drop in gas prices contributed to the monthly decrease in inflation, while the costs of shelter (housing) and food prices increased.
Did you know? The cost of eggs increased just more than 11% from Nov. to Dec., and nearly 60% from Dec. 2021 to Dec. 2022. Read more about the cost of eggs HERE.
Consumer prices fell 0.1% in December, in line with expectations from economists (CNBC)
Economic News Release: Consumer Price Index Summary (U.S. Bureau of Labor Statistics)
by Jenna Lee,
