Inflation increased by 7.1 percent in November compared to the same time last year, down from 7.7 percent in October, according to the U.S. Department of Labor's consumer-price index, reports The Wall Street Journal. Consumer prices across the board rose at the slowest rate all year, signaling a moderation.
Although the decreased pace of inflation is welcome, down from June’s 9.1 percent peak, it remains above the 2.1 percent that characterized the three years leading up to the pandemic.
Despite the price moderation across all areas, grocery prices increased by 0.5 percent in November compared to October, largely due to increases in prices for bakery items and produce. This is a slight acceleration from October’s pace. Dining out similarly experienced a 0.5 percent increase over the same period, a lower rate than the 0.9 percent average increase between June and October.
After supply chain bottlenecks began to improve since their yearly peak this summer, inflation has experienced an improvement. For example, Mike Smith, owner of agricultural-packaging company Griffith Bag Co, said the supply challenges that have caused business difficulties over the last two years are on the decline, according to the report.
“Now we’re back to a mostly normal production cycle, and everything seems to be readily available,” he said. Full Story (Subscription Required)
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