Inflation in the US fell to the lowest level in more than a year

US consumer inflation fell in December 2022 to its lowest level in more than a year. This is according to government data cited by the Financial Times. They testify that the worst period of rapid price increases may be over.

The Federal Reserve raised its key interest rate at a pace not seen since the 1980s in hopes of stabilizing the world’s largest economy.

Amid the aggressive campaign, the consumer price index (CPI) rose 6.5% year-on-year as of last month. This is the smallest increase since October 2021, the Ministry of Labor announced, quoted by AFP and BGNES. The annual figure was also lower than the 7.1 percent jump in November.

“The gasoline index was the largest contributor to the monthly decline across all positions,” the Labor Department said in a statement. That offset an increase in the housing component of more than half a percent, with higher rents still pushing up consumer spending.

Between November and December, the consumer price index fell by 0.1%, marking the first monthly contraction in about two years, the summary data also showed.

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