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Inflation rates are now lower than they were a year ago, according to the U.S. Department of Labor (DOL). Consumer inflation expectations are also moving lower.
A recent report from the DOL showed that consumer prices rose a seasonally adjusted 0.3% in December from November, resulting in prices being up 3.4% from 2022. Price increases were up 3.1% year over year in November. However, the main difference comes when looking at core prices, which exclude food and energy products that are more unpredictable.
Looking at the changes for core prices show that for the first time since May 2021 prices rose less than 4% year over year, with prices rising 3.9% YOY in December. This trend of inflation easing up is likely to continue, especially when considering housing costs for both renters and owners. Rent prices have been cooling, based on new data from sources such as Zillow as well as a New Tenant Rent Index developed by the Department of Labor.
Additionally, a recent report from the Federal Reserve Bank of New York stated that individuals surveyed expected prices to increase by 3%, an estimate down from a high of 6.8% in June 2022. As well, long-term inflation expectations are down from 4.2% in October 2021 to 2.6% in December 2023.
Despite the data showing that inflation is cooling, the effects of increased cost of living have definitively impacted consumers, creating financial distress and uncertainty for many. While there could be some relief ahead, many have fallen behind on debt payment obligations to prioritize other needs. If you are struggling with financial distress in the aftermath of inflation or want to be better positioned for the more favorable economic outlook, bankruptcy may be an option for you to consider.
Contact Sader Law Firm at (816) 561-1818 for a free phone consultation and learn more about how bankruptcy might be the right move for you.
