Inflation is cooling, but consumers aren’t noticing: Here’s why

#inflation #consumer #consumerspending #yahoofinance #fed

The Federal Reserve’s preferred inflation gauge, the PCE Index, showed inflation continued to cool in November. But that doesn’t mean Americans are feeling a tremendous amount of relief when they go to the store. As Economic Cycle Research Institute Co-Founder Lakshman Achuthan explains “the rate of inflation is coming down, but it doesn’t mean that prices levels have come down… They went up and they’re just not rising as fast, they’re rising slower.” Overall, Acuthan says that discretionary spending is softening, while non-discretionary spending, such as education and healthcare, remains “solid.” Watch the video above to hear what Acuthan says about what the cooling inflation data means for the possibility of rate cuts in 2024. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

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