US CPI growth falls below the +7% threshold for the first time in a year. This is welcome news for the US economy. However, core CPI maintains high monthly and annual growth due to rising housing rental costs and mortgage debt amid the Fed's rate hikes. When will housing inflation cool down? Will the real estate market shift positively for inflation in the coming period?
In addition, the CPI decline also implies forecasts of weakening consumer demand. The labor market is also showing slight negative shifts. Will the Fed continue to maintain "higher for longer" interest rates?
This week's macroeconomics article from Viet Hustler will assess the inflation, demand, growth, and labor situation in an economy teetering on the edge of recession through the US December 2022 CPI report.
Key notes in the December 2022 CPI report
December 2022 headline CPI continues to fall as expected: however, core CPI growth (excluding energy and food) remains high.
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