Wholesale inflation as measured by prices paid by businesses rose 0.3% in November, above estimates, the Bureau of Labor Statistics announced on Friday
The number was above estimates for a 0.2% increase however the yearly gain slowed from 8% last month to 7.4%. Economists had forecast a 7.2% annual rate.
Much of the gain was driven by increases in the costs of services. Excluding food and energy costs, prices rose 0.3% for the month and 4.9% yr over yr. That compares to a 6.7% rate a month earlier.
The report is one among the most recent to come back before the Federal Reserve because it begins a two-day meeting next week to set rates of interest, with most observes expecting a rise of fifty basis points following a series of 75-point hikes in recent months,
The Fed has acknowledged some reduction within the pace of inflation recently, nevertheless it remains to be way above the central bank’s 2% average annual goal rate. And Chairman Jerome Powell reiterated the Fed’s intention to “stay the course” until inflation is tamed.
Nonetheless, any indication that inflation is popping down will probably be viewed as an indication the Fed can still pull off a “soft landing” and keep the economy out of recession territory in 2023. Prices for quite a lot of items from used cars to construction supplies to apartment rents have begun to ease.
Political Cartoons on the Economy
