The Consumer Price Index (CPI) for December 2022 declined further, marking the sixth consecutive month of cooling inflation. CPI rose 6.5% from a year ago, the smallest annual increase since October 2021. This is raising the possibility of slower rate hikes ahead.
However, rate hikes are expected to persist for the time being, and a recession looks unavoidable. The World Bank recently warned that the global economy would come “perilously close” to a recession soon, owing to slower growth in all of the world’s major economies — the United States, Europe, and China.
