December saw a slowing of inflation. This gives us hope that the worst price increases last year are behind us.
Perhaps lawmakers will learn from the mistakes of government policy and avoid another crisis.
Bureau of Labor Statistics data released Thursday morning show that prices were 6.5 percent higher in December than they had been 12 months earlier. It’s a decline from the November 7.1% annualized inflation rate, and much better than the peak rate at 9.11% in June. Although 6.5 percent inflation is far higher than the Federal Reserve’s goal, it is still a welcome drop. It would have been absurd to see this rate less than two years ago.
Another encouraging sign is that core inflation, which excludes volatile categories such as food and fuel prices from the calculation, came in at a respectable level. 3.1 percent over the final three months of 2022. Inflation overall was only 1.8 percent in the same time period. As the annualized rate drops in the early 2022 months, additional falls in the top rate are expected.
The details of December’s Consumer Price Index Report are mixed. Lower…