Overview

• Inflation rates have been falling steadily, with the Personal Consumption Expenditure (P.C.E.) deflater indicating a rise of just 3% from October 2022 to October 2023, close to the Federal Reserve's target of 2%.
• Prices of durable goods, such as used cars and appliances, have been falling for the past five months, contributing to the decrease in inflation.
• Despite the decrease in inflation, many Americans are not feeling the impact due to the continued rise in prices for daily necessities like groceries and healthcare.
• Economists predict that the fall in goods prices could bring inflation back to the Federal Reserve's 2% target by as early as the second half of 2024.
• The decrease in inflation has been achieved without significant job losses, contradicting predictions that reducing inflation would require a recession or a large rise in unemployment.