Inflation slows again to 6.5% as gasoline and used car prices fall

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A glimmer of hope for cash-strapped consumers as inflation slows again to 6.5% from 7.1%: Falling gas and used car prices offset rising prices food and rent

Inflation in the US slowed once again last month, rising to an annual rate of 6.5 percent in a sign of relief for struggling families and businesses.

Thursday’s Labor Department report on the consumer price index showed inflation remains uncomfortably high, but has fallen well below its recent high of 9.1 percent hit in June.

On a monthly basis, the measure of consumer prices actually declined from November to December, falling 0.1 percent on the month thanks in large part to lower energy prices.

December’s annual inflation rate of 6.5 percent marked the sixth consecutive month of slowing inflation, as well as the slowest annual pace of price increases since October 2021.

Inflation in the US slowed once again last month, rising at an annual rate of 6.5%. It marked the sixth consecutive month that the annual inflation rate has declined

However, there has been no sign from the Fed or any of its voting members of that happening, even as pockets of weakness have begun to appear in the wake of its aggressive monetary policy.

The Fed has repeatedly said it plans to raise its key overnight interest rate further, beyond its current position of a range of 4.25 percent to 4.50 percent. At the beginning of 2022, the rates were practically zero.

Developing story, more to follow.