Although inflation has retreated significantly, it remains elevated enough to erode the spending power of consumers. Prices were 7.1% higher in November than they were a year ago.
Moreover, central bankers worldwide have warned to hold interest rates at higher levels for longer despite recent progress in the fight against inflation. As interest rates dampen the demand, it is expected to trigger a recession next year. However, according to a poll conducted by Reuters, the S&P 500 Index is expected to end 2023 at around 4,200 points level.
