Broad deceleration in prices for a second straight month fuels optimism
appears to be easing its grip on the American economy. Overall prices increased by a mere 0.1% month-on-month in November, according to data published on December 13th, making for that rarest of recent occurrences: a downside surprise. More promising was a breakdown of the data showing that core inflation, which strips out volatile food and energy costs, had decelerated for a second consecutive month. Some of the underlying pressures which have pushed up prices are receding.
The relief stems not just from the view that America’s inflation fever is breaking. There is also hope that the Federal Reserve will become less hawkish. It has already jacked up interest rates from a floor of 0% in March to nearly 4% today, the sharpest bout of monetary tightening in America since the early 1980s.
The biggest drag on headline inflation in November was a decline in energy costs. But the most encouraging development was the breadth of deflation. Many of the consumer goods that were in short supply during the covid-19 pandemic are now readily available. Prices for cars, children’s clothing, furniture, televisions and toys all declined. Trends also turned more favourable for services, which have taken over from goods as the principal inflation driver.
Indeed, concern may soon start to shift from high inflation to low growth. The nature of monetary policy is that it always operates with a lag. It takes months for rate changes to filter through into investment and spending decisions—much of the tightening implemented so far will only hit the economy next year. The median expectation of professional forecasters is that America will experience a recession in the first half of 2023.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Mum knocked unconscious by man as she walked her dog in the woodsMother-of-two Jody Mccrae says she was viciously attacked shortly after spotting a man following her while she walked her pet King through the woods in broad daylight.
Consulte Mais informação »
Katie Price fans all say the same thing as daughter Princess poses for new snapKATIE Price’s fans couldn’t get over how similar her daughter Princess looks in a new picture. The 15-year-old showed the apple doesn’t fall far from the tree as she plugged a fashion brand on her …
Consulte Mais informação »
Nottingham City Council: Job cuts and price rises proposed for budgetNottingham City Council sets out how it plans to save £29m in its next budget.
Consulte Mais informação »
Australia’s Natural Gas Price Cap Could Do More Harm Than Good | OilPrice.comAccording to energy major Woodside, Australia’s price cap on natural gas in the domestic market could do more harm than good
Consulte Mais informação »
Arsenal told 'privately' Mudryk's asking price has 'doubled' but they are 'serious' about 'formal offer'Arsenal have reportedly been told 'privately' that the asking price for Mykhaylo Mudryk has 'doubled' but they are 'serious' about signing him in January.
Consulte Mais informação »