US Economy -- December 24, 2023

Locator: 46385ECON.

Running on all cylinders.

Link here. A year ago, who wudda thought?

One wonders to what extent relatively low energy prices and an independent US with regard to OPEC is responsible for much of this?

Inflation? Link here. Eggs, rent, and used cars.

Or directly to the link.

More from the article

The headline personal-consumption expenditures price index slid by 0.1% in November from the previous month, marking the first decline in prices since April 2020. 

The index is still 2.6% higher than one year ago and the core index, which strips out energy and food prices because of their volatility and is thus viewed as a better gauge of inflation by the Federal Reserve, rose by 3.2% year over year.

That’s still above the Fed’s goal of 2% inflation, but it’s inching closer as the core PCE index has fallen from its peak of 5.6% in February 2022.

Inflation’s retreat has been uneven. Prices for goods have declined since September and dropped 0.7% in November from the previous month.

Prices for services, on the other hand, have risen, advancing 0.2% in November compared with October.

Falling energy prices—down 5.6% from the previous month in November and 10% below the year-ago level—have contributed a lot to the reversal in inflation.

Fuel oil, mostly used for heating, is now 25% cheaper than it was a year ago

Excluding energy prices, the PCE index remained flat in November compared with October.

Did someone murmur OPEC? Link here. 

CNBC weighs in, link here:

Brick and mortar will take their time to lower prices. Thank goodness for Walmart and Amazon.

The 2024 economy? Obama said it best: don't underestimate Joe Biden's ability to f- things up. It's his (Biden's) economy to lose. 

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