The Federal Reserve's preferred inflation gauge eased further in December, and consumer spending fell -- the latest evidence that the Fed's series of interest rate hikes are slowing the economy.
WASHINGTON — The Federal Reserve’s preferred inflation gauge eased further in December, and consumer spending fell — the latest evidence that the Fed’s series of interest rate hikes are slowing the economy.
On a monthly basis, inflation ticked up just 0.1% from November to December for a second straight month. Energy prices plunged 5.1%, and the overall cost of goods also fell. Friday’s figures are separate from the better-known inflation data that comes from the consumer price index. The CPI, which was released earlier this month, has also shown a steady deceleration.
A recession typically causes widespread layoffs and higher unemployment. But for now, U.S. employers are adding workers, and the unemployment rate remains at a half-century low of 3.5%.
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US inflation and consumer spending cooled in DecemberThe Federal Reserve’s preferred inflation gauge eased further in December, and consumer spending fell — the latest evidence that the Fed’s series of interest rate hikes are slowing the economy. us inflation kprc2 click2hosuton
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