The drop could indicate that inflation is starting to cool.
The Commerce Department reported that American household spending dropped by two-tenths of a percent in the month of December. The economic slowdown is seen as a sign that inflation may be cooling as it reached its lowest point since October 2021.
The report from the Commerce Department showed that prices rose 5 percent in December from a year earlier, down half a percentage point from the year-over-year increase in November. It was the third month to see a drop in prices.
The consumer spending report confirms reports from retailers who say holiday sales were sluggish—the weakest in two years.
As the Lord Leads, Pray with Us…
- For the members of the Federal Reserve as they will soon meet again to consider additional rate hikes aimed at slowing inflation.
- For families struggling with household budgets under the pressures of increased prices.
Sources: Wall Street Journal, Associated Press
