Here’s the inflation breakdown for December 2023 — in one chart

The rate of increase in prices known as inflation rose in the United States in December 2023.

The annual inflation rate reached 3.4% in December, up from November’s 3.1% figure.

However, economists point out that the total number conceals signs of declining inflation.

The pandemic-era inflation spike of 9.1% has decreased thanks to this deflationary trend.

Even if food and housing costs continue to be higher, buyers can find some relief in the fact that they are no longer increasing.

The consumer price index (CPI), which measures the rate of change in everyday costs such as food, transportation, and entertainment in the US economy, increased by 0.3% from November to December 2023.

Although this is a rise from the November figure, economists contend that it is less concerning than it appears due to the monthly fluctuation influencing the yearly comparison.

The CPI growth was significantly impacted by rising shelter prices, particularly rents.

Other categories, like car insurance costs, amusement expenses, and educational costs, have also seen substantial percentage rises.

However, costs for specific goods, including used vehicles, household devices, and educational supplies, have stabilized or even decreased.

The unwinding of pandemic-era supply shortages caused by supply chain interruptions and soaring consumer demand is cited as the cause for this alleviation.

Economists are encouraged by the decline in supply shortages and falling prices.

Although gasoline prices increased slightly from November to December, they are down over the past year.

Food inflation has decreased as well; other than housing inflation, which is expected to decline in the near future, most economists are optimistic that the cost of basics—gasoline, food, and rent—will continue to decrease.