US inflation decelerating

[Laodicean60]

I hope so for everyone. I am not a shopper, and my gauge of inflation is when my wife complains about prices. My wife is like a quantum computer when it comes to prices, she even got on me for buying spark plugs that were cheaper at another store.

https://www.reuters.com/markets/us/us-annual-inflation-slows-further-below-3-november-2023-12-22/

 

[QvQ]

The PCE excludes food and energy.
If the price of groceries and gas is high (inflation) then people are not going to buy the items in the PCE. Those prices may remain stable or even decrease.
The PCE is 'is only particularly relevant when there is "deflation" as that indicates that people can only afford essentials, gas and groceries.
It may indicate a slowing of the economy.

 

[Richard T]

Yes decelerating at least temporarily to 3.1% So in 50 years if we held that 3.1% steady a 100 dollars will be worth $21.73 Inflation Calculator
Hardly a great accomplishment. Inflation is government's silent tax. How they measure inflation too makes it understated. It's a rigged game, but investing dollars in assets that appreciate can help.

 

[Laodicean60]

Food prices are high according to my wife.

"Even as U.S. inflation moderates, for millions of Americans every trip to the grocery store is a pain in the pocketbook. Supermarket prices have shot up at the fastest rate in decades, putting staples like eggs and bread out of reach for some. "

We mustn't forget the sanctions against Russia have driven up fertilizer prices.

"Higher costs for animal feed and fertilizer contributed to steeper prices for farmers, while shortages of packaging materials impacted the food-processing stage — such as when peanuts are ground up to make peanut butter. "

But we can never underestimate greed through price gouging by corporations.

"The Federal Trade Commission is currently looking into the possibility of price-gouging. Late in 2021, the FTC launched an investigation into major retailers and consumer-goods companies, including Amazon, Kroger, Walmart, Kraft Heinz and Procter and Gamble."

What is Causing Increasing Food, etc. Prices - Angry Bear

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