In November, a report from the Commerce Department revealed that prices in the United States experienced a decline for the first time since April 2020.
The latest data indicates a further slowdown in U.S. inflation, with the Personal Consumption Expenditures price index dropping by 0.1% from the previous month. This contributed to an annual inflation rate of 2.6%.
Despite these changes, consumer spending continued to surpass expectations, leading to speculation about the U.S. Federal Reserve's strategy of gradually reducing inflation through a series of interest rate hikes without risking an economic downturn.