Inflation slows to 7.1% for November, another sign the economy is cooling off. Compared to October, the inflation rate fell from 7.7%. It’s the second consecutive month it has fallen. We’ll be referencing this article by NBC News.
On a year-over-year basis, inflation hit 7.1%, a slowdown from the 7.7% in October and lower than the 7.3% expected by analysts.
It’s the smallest 12-month increase since December 2021, when it was 7.0%, according to the U.S. Bureau of Labor Statistics.
Signs price growth is cooling
Tuesday’s data captures the first sustained decreases in gas prices.
As of last week, gas prices were found to have settled below where they were one year ago. On Tuesday, the national average was $3.24, according to AAA. Prices have already dipped below a $3 average across the Southern and the Plains states, the organization’s data show.
Prices of durable goods such as clothing, electronics and home appliances have also begun to moderate amid slowing demand and increasing supply.
Last week, an alternative measure of inflation that tracks producers of goods and services also showed slowing price growth. Notable were price declines in airline tickets, automobile parts and hotel accommodations.
Prices of used vehicles also continued to fall, although new car prices surged in November to a new high of $48,681 amid stronger luxury sales.
The largest component of core inflation is rent.
The national median rent fell by 1% month over month in November, to $1,356, according to the rental site Apartment List. That’s the third consecutive monthly decline this year, and the second straight month in which the index has broken the record for the largest monthly decline in its history, which started in January 2017.