Inflation seems to be slowing down, but whether it gets down to a manageable level remains to be seen.
Consumer prices rose 0.1% in November, below the expectations of 0.3%. That puts the year over year number at 7.1%, which was also below expectations.
The report will likely have a domino effect. The Federal Reserve begins their meetings today, and will likely announce another interest rate hike tomorrow. That hike is expected to be 50 basis points, slower than the previous bumps of 75 basis points.
The Fed's goal has been to get inflation down to 2% over the long term, but Bankrate's Greg McBride isn't sure that will happen.
"I don't see how we get there by the end of 2023, and I don't see how we get there without a recession," McBride told KTRH. "We will see inflation come down next year, and with any luck we'll get it to 4%, and then the Fed will likely move the goal post."
McBride also told KTRH that while inflation will come down, don't expect prices to come down to where they were pre-Biden. Getting inflation under control just means that prices won't go up they way they had been rising.