The Consumer Price Index fell 0.1% in December 2022, in line with the Dow Jones estimate, providing some optimism that price pressures are finally easing from their highest level in decades. This could allow the Federal Reserve to dial back on its interest rate hikes.
On top of it, the University of Michigan Surveys of Consumers said that the one-year inflation outlook slipped to a preliminary reading of 4.0% in January from 4.4% in December. Also, the closely watched consumer sentiment index rose to 64.6 in this month’s preliminary survey, the highest reading since January 2022. It is up 8.2% from December’s 59.7 reading, reflecting a perked-up consumer spirit.
