Prices Rose Another 5% In March—Lowest Inflation Reading In Nearly Two Years
ForbesDec 22, 2022
The Facts
The US Labor Dept. reported Wednesday that the consumer price index (CPI), a key measure of US prices, rose 0.1% in March and 5% since last year, less than Dow Jones estimates and its slowest pace since 2021.
Egg prices fell 10.9% — the largest month-to-month decline recorded in 36 years and down from 70.1% in January, but still 36% higher compared to one year ago — helping offset other rising food prices and bringing total grocery prices down 0.3%.
The Spin
Democratic narrative
After a year of soaring prices dominating the public's attention, the tide may be turning. Actions taken by the Biden admin. and the Fed have been successful, and inflation is no longer considered an emergency issue. With the CPI standing at an annual rate rise of 5%, its lowest level since 2021, painful interest rate hikes could soon ease.
Republican narrative
While a welcomed sign, inflation is still way too high, and American families are struggling to stay afloat. Democrats have neither answers nor solutions: Their tax-and-spending policies only worsen the economic burden on families, yet Biden wants taxpayers to foot the bill for his $6.9T budget spree that will send inflation soaring even higher.
Metaculus Prediction
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