U.S. inflation retreating as consumer prices fall; labor market still tight

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U.S consumer prices fell for the first time in more than 2.5 years in December amid declining prices for gasoline and motor vehicles, offering hope that inflation was now on a sustained downward trend, though the labor market remains tight

Americans also got more relief at the supermarket last month, with the report from the Labor Department on Thursday showing food prices posting their smallest monthly increase since March 2021. But rents remained very high and utilities were more expensive.

The consumer price index dipped 0.1% last month, the first decline since May 2020, when the economy was reeling from the first wave of COVID-19 cases. The CPI rose 0.1% in November. Food prices climbed 0.3%, the smallest gain in nearly two years, after rising 0.5% in the prior month. The cost of food consumed at home increased 0.2%, also the least since March 2021. Fruit and vegetable prices fell as did those for dairy products, but meat, poultry and fish cost more. Egg prices surged 11.1% because of avian flu.

Financial markets have priced in a 25-basis point rate increase at the Fed's Jan. 31-Feb. 1 meeting, according to CME's FedWatch Tool.A man arranges produce at Best World Supermarket in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah SilbigerExcluding the volatile food and energy components, the CPI climbed 0.3% last month after rising 0.2% in November. In the 12 months through December, the so-called core CPI increased 5.7%.

The rent measures in the CPI tend to lag the independent gauges. Healthcare costs gained 0.1% after two straight monthly declines. Stripping out rental shelter, services inflation shot up 0.4% after being unchanged in November. A separate report from the Labor Department showed initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 205,000 for the week ended Jan. 7.

 

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A prudent policy approach is needed as damage from high interest rates affects consumer consumption, which leads to huge prescription costs for low growth and high unemployment.

Tell that to Kroger.

What a lie

Rents remain high because great big hedge funds are buying up apartments and abandoning them and raising the rent in other apartments they own in same city

Falling from intentionally astronomical record highs is not an accomplishment.... Shit's fucked and will remain that way for at least the next 2 years, likely the 2 following Bidens ejection from the oval office, as well. Our next president 'unlike Joe', will adopt a mess.

Yeah, Bullshit. Why are eggs not in stores?

Lie....

What planet are you living on?

Now do eggs

North Korea level propaganda

Let me know when I can afford EGGS again! 😡

My fuel jumped 60 cents in 1 day!!! 🤔 POTUS eggs at all time high!! So screw your sleepyhead tweets.

Pretty sure I just paid 5.49 for a dozen eggs today!

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