Inflation moderated for the sixth consecutive time in December 2022, signaling that the Fed’s aggressive stance had its intended effect. CPI increased by 6.5% year-over-year and dipped 0.1% over the prior month, in line with the Dow Jones estimate.
Moreover, the U.S. economy in December added 223,000 jobs, while hourly wages grew at the slowest annual pace in 16 months. Strong job growth with slowing wage increases could result in the “soft landing” that the Fed hopes for.
