The inflation rate in the United States fell in December 2022, to its lowest level in a year, according to government data, Thursday, indicating the possibility of the end of the worst price hike.
The Labor Department said the consumer price index rose 6.5% in December compared to the same month last year, the smallest price increase since October 2021, and slowed after rising 7.1% in November.
And US President Joe Biden said in a statement last December that “Christmas comes with a drop in gasoline prices and the lowest increase in a year in grocery prices,” stressing his “optimism for the coming year,” despite the “volatility.”
Low inflation is good news for purchasing power. This even caused consumer confidence to rebound more than expected in December, according to a University of Michigan survey.
Consumption, the engine of growth in the United States, which has remained strong so far, allowed the gross domestic product to rise by 3.2 percent on an annual basis in the third quarter, after two quarters of contraction, according to Agence France-Presse.
However, the interest rate hike strongly affects specific sectors, especially real estate.
On December 14th, the Fed raised the key interest rate again, but only by half a point, a smaller increase than in previous months but still well above the usual quarter point.
He warned that it is not yet time to stop taking action because he wants to win his battle against inflation permanently.