The December 2023 Consumer Price Index (CPI) rose slightly from the previous month, according to the latest figures from the U.S. Bureau of Labor Statistics, released January 11. The all-items index increased 3.4 percent over the past year before seasonal adjustment, a bit elevated from November’s 12-month jump of 3.1 percent.
Despite the modest increase, inflation is now down substantially from its peak of 9.1 percent last summer, and before July 2023 it had declined for 12 straight months. “Progress has been made on inflation, down significantly from the peak,” says Mark Hamrick, Bankrate’s senior economic analyst. “But the Federal Reserve is not yet ready to declare ‘mission accomplished,’ and consumers are still facing a significant erosion of their buying power.”
Progress has been made on inflation, but the Federal Reserve is not yet ready to declare ‘mission accomplished.’
— Mark Hamrick, Bankrate Senior Economic Analyst
The Fed’s first announcement of the new year is set for January 31. “The central bank is seen keeping interest rates steady at the first meeting of the year,” Hamrick says. “Investors, however, are betting that the Fed will begin to reduce rates in March. But that’s still one meeting away, and there’s a lot of data on inflation and employment due before that announcement.”
Here’s a peek into how inflation affects the housing market.
Inflation and the housing market now
Despite this overall progress,…
