Americans Have Started to Believe Inflation Is Cooling

Consumer prices rose 0.3% from November to December, resulting in a 3.4% increase compared to the previous year, according to the Labor Department. In November, the year-over-year increase was 3.1%. Meanwhile, core prices, which exclude food and energy items, went up 3.9% from the previous year. This marks the first time since May 2021 that core prices have risen less than 4%. Lower inflation and decreasing inflation expectations are significant factors to consider.