Kentaroo Tryman | Maskot | Getty ImagesInflation declined slightly last month on the back of weaker prices at the gasoline pump and a broader easing of price pressures throughout the U.S. economy, experts said.The consumer price index in November increased 3.1% from 12 months earlier, down from 3.2% in October, the U.S. Bureau of Labor Statistics said Tuesday.”There is still a lot of disinflationary pressure in the system,” which will likely drive inflation even lower heading into 2024, said Sarah House, senior economist at Wells Fargo Economics.The CPI is a key barometer of inflation, measuring how quickly the prices of things from fruits and vegetables to haircuts and concert tickets are changing across the U.S. economy.[embedded content]The November reading is a significant improvement on the pandemic-era peak of 9.1% in June 2022 — the highest rate since November 1981. Prices are therefore rising much more slowly than they had been, and in some cases even falling outright.”Inflation is still on the high side of what I think everyone would feel comfortable with, but it’s coming back down to earth steadily but surely,” said Mark Zandi, chief economist at Moody’s Analytics.[embedded content]The U.S. Federal Reserve aims for a 2% annual inflation rate over the long term.”I expect by this time next year we’ll be back within spitting distance of the target,” Zandi said.Gasoline prices declined againAs in October, gasoline prices were a big contributor to falling inflation in November, economists said.Gasoline prices dropped 6% in November, according to Tuesday’s CPI report. They had dropped 5% in October.Average nationwide prices for regular-grade gasoline declined by about 24 cents a gallon between Oct. 30 and Dec. 4, to $3.23 a gallon from $3.47, according to weekly data published by the U.S. Energy Information Administration.More from Personal Finance:The Federal Reserve could achieve a soft landing after allMore retirement savers are borrowing from their 401(k) planPeople are spending hundreds a month on dating appsBy comparison, in August and September, gasoline was a major contributor to increases in overall inflation readings. In August, for example, prices at the pump spiked 10.6% largely due to dynamics in the market for crude oil, which is refined into gasoline.Those supply-and-demand dynamics can “change in a minute,” and therefore declining gas prices may not persist, said Mark Hamrick, senior economic analyst at Bankrate. “But you ta …
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[mwai_chat context=”Let’s have a discussion about this article:nnKentaroo Tryman | Maskot | Getty ImagesInflation declined slightly last month on the back of weaker prices at the gasoline pump and a broader easing of price pressures throughout the U.S. economy, experts said.The consumer price index in November increased 3.1% from 12 months earlier, down from 3.2% in October, the U.S. Bureau of Labor Statistics said Tuesday.”There is still a lot of disinflationary pressure in the system,” which will likely drive inflation even lower heading into 2024, said Sarah House, senior economist at Wells Fargo Economics.The CPI is a key barometer of inflation, measuring how quickly the prices of things from fruits and vegetables to haircuts and concert tickets are changing across the U.S. economy.[embedded content]The November reading is a significant improvement on the pandemic-era peak of 9.1% in June 2022 — the highest rate since November 1981. Prices are therefore rising much more slowly than they had been, and in some cases even falling outright.”Inflation is still on the high side of what I think everyone would feel comfortable with, but it’s coming back down to earth steadily but surely,” said Mark Zandi, chief economist at Moody’s Analytics.[embedded content]The U.S. Federal Reserve aims for a 2% annual inflation rate over the long term.”I expect by this time next year we’ll be back within spitting distance of the target,” Zandi said.Gasoline prices declined againAs in October, gasoline prices were a big contributor to falling inflation in November, economists said.Gasoline prices dropped 6% in November, according to Tuesday’s CPI report. They had dropped 5% in October.Average nationwide prices for regular-grade gasoline declined by about 24 cents a gallon between Oct. 30 and Dec. 4, to $3.23 a gallon from $3.47, according to weekly data published by the U.S. Energy Information Administration.More from Personal Finance:The Federal Reserve could achieve a soft landing after allMore retirement savers are borrowing from their 401(k) planPeople are spending hundreds a month on dating appsBy comparison, in August and September, gasoline was a major contributor to increases in overall inflation readings. In August, for example, prices at the pump spiked 10.6% largely due to dynamics in the market for crude oil, which is refined into gasoline.Those supply-and-demand dynamics can “change in a minute,” and therefore declining gas prices may not persist, said Mark Hamrick, senior economic analyst at Bankrate. “But you ta …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
