Forecasters said inflation receded further in November and there were growing signs that price pressures could be contained without a recession as consumers increased spending as the economy improved.
- Economists surveyed by the Wall Street Journal estimated that the core consumer spending price index, which excludes volatile food and energy categories, rose 0.1% month-over-month in November, slowing from 0.2% in October. ing. This is the lowest growth since August. For the full year, we expect core inflation to slow to 3.3% in November from 3.5% in the previous month.
- Some forecasters peg core inflation at 2% on a six-month annualized basis, which is consistent with the Federal Reserve’s year-over-year inflation target.
- Consumer spending is likely to have increased by 0.3% month-on-month in November, following a 0.2% increase in October. Personal income is likely to increase by 0.2% to 0.4%. The Commerce Department is scheduled to release the latest data on inflation, personal spending and income at 8:30 a.m. ET on Friday.
- Separate data released Friday from the University of Michigan will provide a final reading of consumer sentiment for December. Preliminary figures showed an increase of 13% from the previous month.
“Falling inflation, stable employment growth, and steadily rising wages are increasing Americans’ incomes, adjusted for price changes,” he said. bernard yaros, Chief US Economist at Oxford Economics. “And that bodes well for actual consumer spending.”
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