Amid heightened macroeconomic uncertainty due to multi-decade-high inflation, the Fed’s aggressive rate hikes, and Russia’s outright invasion of Ukraine, major market indices struggled significantly in 2022.
However, inflation is retreating, with the rise in consumer prices slowing for a sixth straight month. The Consumer Price Index (CPI) rose 6.5% in December compared to a year ago, down from a peak of 9.1% in June last year. Despite the slowdown in price increases, inflation continues to hover much above the Fed’s target of 2%.
