Inflation Down In US: There is news of relief for the US on the inflation front before the Federal Reserve announces an increase in interest rates. After October, the inflation rate has come down in the month of November as well. This is a clear indication that the rate of increase in prices is now slowing down. The inflation rate in November 2022 has been 7.1 percent while in October it was 7.2 percent.
According to the Labor Department, the inflation rate in November 2022 has been 7.1 percent while in October it was 7.2 percent and in September it was 8.2 percent. This is the lowest increase in the inflation rate since January. On a month-to-month basis, the Consumer Price Index rose by only 0.1 per cent in November, which is less than 0.4 per cent in October. However, despite this, the Federal Reserve is preparing to announce an increase in interest rates on 14 December. The Federal Reserve may raise interest rates for the seventh consecutive time on Wednesday. Due to which it will be expensive to take loan from consumer to businessmen.
According to the government data, inflation has come down in November due to reduction in the prices of fuel, electricity and used cars. The prices of copper, wheat and other commodities have also come down, due to which the construction cost will come down and the food cost will also come down. Housing cost is still rising. Although the prices of rental apartments and houses have come down.
The inflation rate in America had reached the highest level of 40 years, after which the Central Bank Federal Reserve is continuously making the loan expensive. However, economists believe that if the Federal Reserve continues to raise interest rates to control inflation, there could be a recession in the US next year. Companies have started laying off even before the onset of recession. Companies like Meta to Twitter, Alphabet and IBM are doing layoffs for the purpose of cost reduction.
In 2022, the Federal Reserve has announced to increase interest rates six times. In fact, the Federal Reserve wants to reduce the purchasing power of people through expensive loans so that inflation can be controlled. Because due to cheap loans, people were buying houses and cars along with shopping for expensive things from the ground.