Posted 12/20/2023, 2:52:00 PM
Service Sector Inflation Sticks at High Levels While Goods Costs Ease
- Inflation in services remains sticky and high despite slowing goods inflation
- Service inflation up due to strong consumer demand and tight labor market driving up wages
- Costs rising rapidly for recreation, transportation, car insurance, repairs, and medical
- Shelter inflation expected to slow but could stay high and keep overall inflation elevated
- Analysts say unemployment may need to rise to ensure services inflation falls back to 2% target