tomorrow afternoon 14 decemberfederal Reserve America (Fed) held its last monetary policy meeting of the year. Through this the Central Bank announced 50 basis points increase in interest rates.
During the past months, The Fed has taken an accommodative stance with a sustained rate hike of 75 basis points. it, for the purpose of Inflation to be brought down to 2 per cent after a year-on-year rate of 9.1 per cent in June this yearbeing a percentage Highest in last 40 years.
yes ok Aggressive growth has shown positive impact in reducing inflation ratesTruth is this Aggressive Fed stance raises fears of possible recession; Which leads to the next question: Will the Consumer Price Index (CPI) go up or down?
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Will CPI in USA go up or down in 2023 according to experts?
inflation rate It is measured through the Consumer Price Index, what is a measurement that shows Change in cost of goods and services compared to the previous yearthat is, Tracks how far prices go up or down. If the CPI is high, There will also be an inflation rate.
From June, when the all-time high was recorded, to the present (December), the CPI has declined significantly. Continuing this trend, experts estimate that The Consumer Price Index will continue to fall through 2023.
Even then, Aggressive hikes by the Fed will continue into next year, well, although inflation is coming down, The reality is that rates remain high.
According to official statistics, The current inflation, with respect to last November, was 7.1 per cent; Below is the data for the previous month (October), when the inter-annual rate was 7.7 per cent; which supports the decline. Fed aims to Reduce the rate of inflation to two percent.