US Sees Deflation For First Time In Three Years, Paving Way For Fed's 2% Inflation Target
The U.S. is experiencing deflation for the first time in three years. This trend is primarily observed in goods such as appliances, furniture, and used cars.
What Happened: Industry experts predict that the prices of these goods might keep declining, possibly hastening inflation back to the Federal Reserve’s 2% target by the latter half of next year, reported The Wall Street Journal.
Long-lasting or durable goods have recorded a year-over-year price drop for five consecutive months. In October, they stood 2.6% lower than their peak in the previous month, according to data from the Commerce Department.
This price reduction has led to a dip in core inflation, which leaves out volatile food and energy categories, to 3.5% in October, a decrease from 5.5% in September 2022.
What Happened: Industry experts predict that the prices of these goods might keep declining, possibly hastening inflation back to the Federal Reserve’s 2% target by the latter half of next year, reported The Wall Street Journal.
Long-lasting or durable goods have recorded a year-over-year price drop for five consecutive months. In October, they stood 2.6% lower than their peak in the previous month, according to data from the Commerce Department.
This price reduction has led to a dip in core inflation, which leaves out volatile food and energy categories, to 3.5% in October, a decrease from 5.5% in September 2022.
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