Inflation in the United States slowed last month, the latest sign that prices are easing despite continuing pressure on consumers.
Consumer prices rose 7.1% year-over-year in November, the government reported on Tuesday. This represents a considerable decrease from the 7.7% in October and the maximum of 9.1% in June. It is the fifth time in a row that statistic has decreased.
At a monthly rate, the consumer price index rose just 0.1%. And so-called core inflation—which excludes more volatile items like food and fuel and is closely watched by the Federal Reserve—slowed to 6% compared to the same month last year. From October to November, core inflation rose 0.2%, the smallest rise since August 2021.
Still, the latest figures suggest that inflation in the United States is easing gradually from the sharp rise in prices 18 months ago and after reaching a peak not seen in four decades.
Gasoline prices have fallen sharply from their summer peak. Prices for used cars, medical care, airfare and hotel rooms also fell in November. Same with furniture and electricity rates.
Prices in supermarkets, however, increased 0.5% from October to November and 12% compared to November last year. Home prices also rose, though those numbers don’t reflect the most up-to-date data showing a decline in home prices and apartment rents.
“Inflation was terrible in 2022, but the outlook looks much brighter in 2023,” said Bill Adams, an economist at Comerica Bank. “Supply chains are picking up and store inventories are rising, and that is easing the shortages that fueled inflation in 2020.”