U.S. Wholesale Inflation Closed Out 2023 With 1% Annual Rate in December (Micro News for January 13, 2024 – January 19, 2024)

The producer price index (PPI) indicates that inflation is continuing to cool off. The data show that wholesale price inflation increased by a 1% annual rate in December 2023. The PPI measures the changes in input prices used to produce goods and services. After removing the volatile food and energy prices, the core PPI was up by only 1.8% for the year. For comparison, the PPI peaked "at a record 11.7% in March 2022."

The Worst of Inflation Could Be Behind Us. A Recession May Not Be (Macro News for December 30, 2023 – January 5, 2024)

Pundits and experts thought that high inflation would push the U.S. into recession in 2023. The Federal Reserve's aggressive contractionary monetary policy and belt tightening by many firms resulted in layoffs, but still did not result in the expected recession. Fed chair Jerome Powell remains noncommittal and stated in December 2023 that the economy appears strong, but an economic shock could result in a 2024 recession.

Inflation Has Created a Dark Cloud Over How Everyday Americans View the Economy (Micro News for December 23, 2023 – December 29, 2023)

Inflation is eroding consumer confidence as everyday items become more and more expensive. Many consumers have been forced to cut back on things like eating out or seeing a movie just so they can feed their families and keep the lights turned on. One consumer that lives in Florida stated she has noticed fewer boats being launched and very few new vehicles on the road. Parents like her have started to share ways to cut costs on social media.

China Slips Into Deflation as Consumer Prices Fall for the First Time in More Than Two Years (Micro News for August 5, 2023 – August 11, 2023)

China's consumer prices fell for the first time in over two years. The deflation indicates that Chinese consumer demand is weaker, and the nation could enter a period of stagnant growth. Food, household goods, and transportation costs all fell in July 2023. Pork prices led the decline and were down by 26%. The overall consumer price index (CPI) was down by 0.3%. China's producer price index (PPI) fell by 4.4% over the past year.