Since last year, consumers have been battling higher food prices due to high inflation. However, the Fed’s aggressive rate hikes have brought down prices as inflation eased for the consecutive months of October and November.
Moreover, December’s inflation report showed that the consumer price index declined 0.1% and increased 6.5% over the last 12 months. The food index increased by 0.3%, lower than 0.6% and 0.5% for October and November, respectively. While the Fed is still far from its long-term inflation target, cooling prices should raise investors’ sentiment.
