Inflation ‘breather’ on the horizon, financial experts say

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YOUNGSTOWN, Ohio (WKBN) – A break in inflation could come early this year, according to financial analysts.

The prices of groceries, gas, hotels, rental cars, just about everything have gotten more expensive. The October Consumer Price Index (CPI) rose to 6.2%, the highest increase since 1990.

Price increases were high across the board: Food rose 0.9% from September, energy surged 4.8%; other goods prices rose 1.0%, and non-energy service prices rose 0.4%. CPI excluding food and energy prices, or core CPI, rose 0.6%, according to PNC Financial Services Group.

According to the Associated Press, The economy’s strong rebound from the 2020 coronavirus caught many businesses by surprise. Their scramble to meet unexpectedly strong demand has created shortages of labor, raw materials and goods and snarled traffic at ports and freight yards.

According to PNC, after the turn of the year, the logistics industry should get a breather after the rush to stock holiday shelves ends, and energy prices should fall by the spring if not earlier.

The Federal Reserve is looking to raise interest rates, which should help stabilize the economy, but it is waiting for the labor market to improve.

PNC experts forecast that the Federal Reserve will make their initial increase in the Federal Funds rate in December 2022, but admit it could come earlier.

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