Inflation Moderates Slightly in November but High Prices Still Strain Consumers
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Inflation moderated slightly in November to 3.1% annually, offering evidence that high inflation is slowly abating.
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People are still unhappy as their paychecks don't go as far today as pre-pandemic despite nominal wage growth, reducing buying power.
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Prices still put pressure on consumers; it will take time before most feel a difference in their bank balance.
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Goods and energy deflation helped offset rising shelter and services costs, but core services inflation remains out of reach of Fed goals.
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The Fed will likely hold rates steady, but trend is encouraging though fine details sow doubts on sustained disinflation path.