Due to the Federal Reserve’s constant increases in interest rates, goods and services are becoming less expensive. However, prices are still much higher than they were one year ago.
According to Tuesday’s Consumer Price Index report by the Bureau of Labor Statistics, consumer prices have increased 7.1% year over year as of November 2022. The Consumer Price Index measures inflation’s impact by the average price consumers pay for goods or services such as groceries and gasoline. The index saw the lowest increase year-over-year since December 2021. Tuesday’s report was the most recent.
The 0.1% increase in consumer prices from October to November was lower than the 0.4% change between September and October, according to BLS data.
The largest contributor to price rises was the shelter index which rose 0.6% from October. The prices of food are also on the rise. Groceries and restaurant food both increased 0.5% month-overmonth. Overall, food is up 10.6% over the previous year. This number is not seasonal.
There’s also good news: Energy prices are falling (-1.6%), compared to the previous month when they rose (+1.8%). These decreases include gasoline (-2.0%) and electricity (-0.2%) as well as utility gas services (–3.5%).
What has changed?
Notice: Month-to-month changes in the CPI report are adjusted seasonally. Year-over-year changes, however, are not adjusted.
September to Oct: +0.6%.
October toNovember: +0.5%.
November 2021 to December 2022: +10.6%.
September to Oct: +0.8%.
October toNovember: +0.6%.
November 2021 to December 2022: +7.1%.
Fuel, Utilities :
September to Oct: +1.8%.
October to November: -1.6%
November 2021 to December 2022: +13.1%.
Medical care services:
September and October: -0.6%.
October and November: -0.7%.
November 2021 to December 2022: +4.4%.
Transportation services (insurance, airfare, etc. ):
September to Oct: +0.8%.
October and November: -0.1%.
November 2021 to December 2022: +14.2.
September to Oct: +0.4%.
No changes from October to November
November 2021 to December 2022: +7.2%.
Cars and trucks for sale:
September and October: -2.4%.
October through November: -2.9%.
November 2021 to December 2022: -3.3%.
September and October: -0.7%.
October toNovember: +0.2%.
November 2021 to December 2022: +3.6%.
This week’s Federal Reserve Board meeting is focused on controlling inflation. They are expected to announce a second interest rate increase on Wednesday, for seven additional increases in 2022. The rate hike is expected to be less than the previous four increases of 0.75 percentage points.