💱 Economic Indicators for Week 51.2022
Inflation isn’t over, but it is slowing. Prices were up 7.1% year-over-year in November, which marks the fifth straight month-over-month of year-over-year decline. That weird wording is because November prices were up 0.1% compared to October. So basically flat.
Janet Yellen (the Treasury Secretary) suggests inflation should continue to cool off through 2023. Recession not required? And does saying we don’t need a recession increase the chances of not having one? And does helping avoid a panic increase consumer confidence?
Regardless of the answers to the above and whether the chicken or the egg came first, the Federal Reserve increased interest rates again. But this time only by 0.5%, so even that indicator is slowing down.
On the flip side, the Fed also expects that rates will rise higher than its previous target. And that inflation will remain about its 2% target until 2025.
Oh, and vegetable prices are way up. Why? Drought.