2024-01-26 23:46:00 ET
Summary
- The unemployment rate stayed under 4%, wage growth outpaced inflation and the stock market ended the year at an all-time high.
- Monthly inflation data measures the percentage change in price levels. So, when inflation falls from 9.1% to 3.4%, as it has over the past 18 months, prices are still rising but more slowly.
- Policymakers have no interest in pushing prices down; deflation would almost certainly require a nasty recession and, over the long run, be more disruptive to economic growth than inflation would.
By Eric Winograd.
Falling inflation hasn’t yet translated into good feelings among US consumers. Based on the latest data, that might be changing.
Read the full article on Seeking Alpha
For further details see:
Is The 'Vibe-Cession' For US Consumers On Its Way Out?