CPI Report Shows U.S. Inflation Eased in November
“The labor market is sort of the last stand where strength there is leading to higher wage growth, and that could continue to pressure inflation,” said Michael Pond, head of global inflation-linked research at Barclays
PLC.
Home sales have fallen as mortgage rates increased. An easing of housing costs and the slowing pace of price increases for goods could take some pressure off inflation, said Paul Ashworth, chief U.S. economist at Capital Economics.
“For the next six to 12 months, even without moderation in wage growth, core inflation can come down quite considerably with just the disinflation we’re going to be getting from goods and shelter prices,” he said.