Inflation is showing signs of easing, with the Consumer Price Index (CPI) accelerating by 7.1% annually last month, down from 7.7% in October. The November CPI report marked the fifth-straight monthly decline and came in better than economists’ expectations of 7.3%. The monthly increases for food slowed to 0.5%, following a 0.6% increase in October.
The Federal Reserve last week raised its benchmark interest rate by 50 basis points, taking it to a targeted range between 4.25% and 4.5%, the highest level in 15 years. Although the increase broke a series of four straight 75 basis point hikes, the Fed officials indicated it would raise rates higher through the following year. The Fed’s resolve to keep hiking rates sparked recessionary fears lately.
