Inflation Slows to Eleven-Month Low

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Inflation hit its lowest point in eleven months, but remains near 40-year highs. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, was up 7.1% on an annual basis in November 2022, according to the Bureau of Labor Statistics. That was lower than the 7.7% annual increase in October and below the 9.1% hike in June, which was the biggest year-over-year jump in prices since November 1981. In addition, November’s rate was lower than the 7.3% increase forecasted by economists. Still, inflation has now remained at or near 40-year highs for 13 consecutive months, the biggest price surges since the severe economic recession of 1981-1982. Used vehicle prices helped bring down the recent inflation figure, as the cost of used cars and trucks dropped 3.3% over the past 12 months, the first year-over-year price cut in more than two years. The price of new vehicles was up 7.2% in the year-ending November, down from the 8.4% annual increase the previous month. Energy prices were up 13.1% in the year-ending November, with gasoline prices 10.1% higher than a year ago, with both of those measures at their lowest levels since early 2021. Food prices were up 10.6% year-over-year in November. Though down from the 10.9% annual increase in October, it was still one of the largest 12-month increases since 1979. Additionally, the cost of airline fares surged 36% year-over-year in November, down from the 42.9% annual increase the previous month but still at four-decade highs. However, the cost of shelter continued to climb, rising 7.1% over the past year, the largest 12-month increase since July 1982.