Robert Besser
02 Feb 2023, 02:03 GMT+10
WASHINGTON D.C.: In the latest indication that its interest rate hikes are slowing the US economy, the Federal Reserve's main inflation indicator eased further in December, while consumer spending fell.
According to a report from the Commerce Department released this week, prices rose 5 percent last month from one year earlier, down from a 5.5 percent year-over-year increase in November, being the third consecutive monthly decrease.
From November to December, consumer spending fell 0.2 percent and was revised lower to a 0.1 percent decline from October to November.
The Federal Reserve Bank will likely welcome the slowing in consumer spending, as they aim to cool the economy by increasing lending costs.
Meanwhile, inflation rose 0.1 percent from November to December for a second consecutive month.
These latest figures are separate from the better-known inflation index, the consumer price index (CPI), that was released earlier this month and also showed a steady slow down.
"The latest data offer the first tangible signs that the economy's main engine is slowing," said Oren Klachkin, lead US economist at Oxford Economics, as quoted by the Associated Press.
The Fed has aimed to slow spending, growth and rising prices, which have negatively affected the US for some two years, but it is in an increasingly delicate position. Chair Jerome Powell stressed that the US central bank plans to maintain its increases and raising its key rate, potentially until the end of the year, but this might not be possible if a recession happens.
Last week, the Federal Reserve's beige book, a gathering of anecdotal reports from businesses around the country, said, "Many retailers noted increased difficulty in passing through cost increases, suggesting greater price sensitivity on the part of consumers."
Get a daily dose of Texas Guardian news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Texas Guardian.
More InformationThis campaign explores ice hockey players' influence and popularity beyond their National Hockey League (NHL) careers. The goal was to ...
(Photo credit: Kirby Lee-USA TODAY Sports) The Los Angeles Dodgers are nearing a deal with free-agent reliever Joe Kelly, multiple ...
(Photo credit: Gregory Fisher-USA TODAY Sports) The New York Jets are releasing backup safety Adrian Amos, multiple outlets reported Saturday. ...
(Photo credit: Jake Crandall / USA TODAY NETWORK) Auburn has a nonconference schedule typical of an elite college basketball program. ...
(Photo credit: Eric Hartline-USA TODAY Sports) With Zach Ertz free to sign with any team after mutually parting ways with ...
(Photo credit: Kareem Elgazzar-USA TODAY Sports) Cincinnati Bengals wide receiver Tee Higgins and linebacker Logan Wilson will play in Monday ...
WASHINGTON D.C.: This week, the White House said that Senior Biden administration officials met with the makers of respiratory syncytial ...
CHEYENNE, Wyoming: This week, the Biden administration raised US$3.4 million from a sale of oil and gas drilling rights in ...
NEW YORK, New York - U.S. stocks extended their rally on Friday despite remarks by Federal Reserve Chair Jerome Powell ...
MOSCOW, Russia: Russia's trade in oil with India, one of the most lucrative oil trade routes since the imposition of ...
LONDON - Health experts and tobacco campaigners have strongly criticized New Zealand's decision to repeal laws that aimed to ban ...
NEW YORK, New York - The Dow Jones index was the standout on U.S. financial markets on Thursday with a ...