Washington The Americans have not felt such excruciating inflation since 1981, when “The Jeffersons” and “The Dukes of Hazzard” were dominating the TV ratings. However, it appears that the Federal Reserve is about to overcome it, and without the severe recession and spike in joblessness that many analysts had predicted would follow.
Since reaching a peak of 9.1% in June of last year, inflation has been declining rather consistently. Furthermore, according to UBS economists, when the Fed releases its preferred inflation gauge for November the following week, it will probably reveal that, during the previous six months, annual inflation actually decreased slightly below the Fed’s target of 2%.
For the past six months, the price of products, including furniture, appliances, and secondhand cars, has decreased. Goods prices are largely stable from a year earlier, thanks to enhanced worldwide supply systems.
One of the main causes of inflation, housing and rental expenses, is expanding more slowly. Although it has slowed, wage growth is still higher than inflation. Less aggressive wage growth typically relieves pressure on lodging facilities, restaurants, and other businesses to raise prices to compensate for labour costs.
