RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Inflation May Be Slowing, but so Is Consumer Spending

Home Agents
By Jordan Grice
January 27, 2023
Reading Time: 2 mins read
Inflation May Be Slowing, but so Is Consumer Spending

There’s still a way to go before the Federal Reserve gets inflation under control. However, the signs of progress continue to come in as personal consumption expenditure (PCE) inflation—the Fed’s preferred measurement—also shows signs of deceleration. 

New data released by the Commerce Department on Friday show that PCE dipped 0.2% last month, marking the second consecutive month of declines after recording a modest drop of 0.1% in November.

Friday’s PCE index reading shows another sign of a slowing economy, as Wall Street Journal reports also acknowledged that core PCE recorded its slowest growth rate since October 2021. 

Core prices—everything except volatile food and energy—rose 4.4% in December from a year earlier—its slowest pace since October 2021. 

The dip in overall PCE was mainly due to a decline in spending on goods despite a significant uptick in spending on services—which housing is a part of and served as one of the most significant contributors. The report indicates that dips led to decreases in goods in gasoline prices. 

Annually, the report showed that PCE rose 5% in December compared to a year ago, following a 5.5% YoY increase in November.

Economists wasted little time weighing in on Friday’s data. Reacting to the report on Twitter, Harvard economics professor Jason Furman said, “Overall, inflation is moderating, but it is likely to be faster over the next few months than the last few. And most underlying measures are still well above the Fed’s target. More work to do!”

Inflation remains more than double the 2% benchmark the Fed seeks to obtain as it maintains its interest rate hikes this year. Though it’s uncertain how the Fed will respond during its February meeting, recent New York Times reports suggest that Fed officials are considering making smaller rate adjustments than it has in recent months. 

With the Fed set to meet for the first time this year in just a few days, officials have offered their insight into inflation and how the Fed could respond.

In an interview with the Wall Street Journal earlier this month, Mary Daly, president of the San Francisco Fed, said she was currently anticipating inflation to fall into the “low 3%” range by the end of this year, reaching the Fed’s target of around 2% by the end of 2024.

She indicated that an interest rate hike between 25 and 50 basis points was on the table. 

Susan M. Collins, president of the Boston Fed, said she was leaning more toward the former in an interview with the New York Times.

Tags: FeatureFederal Open Market CommitteeFederal ReserveHousing Markethousing recessionInflationInflation RatesInterest RatesMLSMLSNewsFeedMLSSpotlightMortgage Rates
ShareTweetShare

Jordan Grice

Jordan Grice is a senior editor for RISMedia.

Related Posts

Existing-Home Sales Surged 14.5% in February—the Largest Increase Since July 2020
Agents

Existing-Home Sales Surged 14.5% in February—the Largest Increase Since July 2020

March 21, 2023
Anywhere Shakes Things Up, Names Lane New Coldwell Banker Realty CEO
Agents

Anywhere Shakes Things Up, Names Lane New Coldwell Banker Realty CEO

March 21, 2023
Amid Some Positive Signs, Housing Affordability Struggles Continue to Affect Buyers and Homeowners Alike
Agents

Amid Some Positive Signs, Housing Affordability Struggles Continue to Affect Buyers and Homeowners Alike

March 21, 2023
Altrata Reveals Evolving Residential Footprint of the Ultra-Wealthy
Agents

Altrata Reveals Evolving Residential Footprint of the Ultra-Wealthy

March 21, 2023
OneKey MLS Reports Decreased Median Sale Price in southern New York
Agents

OneKey MLS Reports Decreased Median Sale Price in southern New York

March 21, 2023
Top 500 Power Brokers Revealed in Exclusive Release
Latest News

Top 500 Power Brokers Revealed in Exclusive Release

March 21, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

How Can You Better Support Your Servicemember Clients?

There are around 20 million veterans in the United States. Are you equipped to help them achieve their homeownership dreams? Learn more.

Business Tip of the Day provided by

Recent Posts

  • Existing-Home Sales Surged 14.5% in February—the Largest Increase Since July 2020
  • Anywhere Shakes Things Up, Names Lane New Coldwell Banker Realty CEO
  • Amid Some Positive Signs, Housing Affordability Struggles Continue to Affect Buyers and Homeowners Alike

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

Join Premier for as low as $30!

Join Premier
logo-rismedia-white
x
X