"Assessing the Impact of Falling Inflation Rates on US Consumers"

Despite the Federal Reserve's ongoing fight against inflation, the rate of inflation has slowed down, with the 12-month rate measured at 3.1% in November and forecasted to remain unchanged for December. While prices are not reversing, the slowdown in price growth for food and energy has been more aggressive. Consumer sentiment remains depressed, but there are signs of improvement as wage growth surpasses inflation and consumer confidence increases. Economists view consumers' increasing debt burdens as a sign of growing optimism, and expect wage growth to continue outpacing inflation, leading to small gains in purchasing power.