Consumer Spending Dropped in December

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


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