A sharp drop in energy prices, especially gasoline, is helping to ease pressure on the cost of living in the US.
US inflation for the 12 months ended December was 6.5%, up from 7.1% in November, according to the US Department of Labor.
That was the smallest rise in more than a year and marked the sixth straight month of declines.
Some items like oranges and bananasIn December there were even downright price declines compared to November.
Authorities in the US have been struggling to stabilize prices, which got underway in 2021 as the economy revived from pandemic lockdowns and companies facing shortages and rising costs hiked prices.
The war in Ukraine, which disrupted food and energy supplies, exacerbated the problem, pushing inflation to 9.1% in June – the highest rate in more than four decades.
The US Federal Reserve raised interest rates last year at its fastest rate in decades to get the inflation problem under control.
But Federal Reserve Chair Jerome Powell said last month that the bank would start trading less aggressively to see how the moves affect the economy.
By raising the cost of borrowing, the Federal Reserve expects to dampen demand for expensive items like homes and cars, helping slow the economy and relieving the pressures that are pushing up prices.
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