Measured Relief |
The latest inflation numbers from the United States offer a moment of relief in a debate that has been politically charged and economically fraught for years. A slower pace of price increases in November suggests that some of the pressures weighing on households may finally be easing. But beneath the headline figure lies a more complicated story ~ one that cautions against premature celebration or sweeping policy conclusions. On the surface, the moderation in inflation appears broad-based.
Prices for discretionary services such as hotels, along with everyday essentials like milk and clothing, showed signs of cooling. Most notably, housing-related costs ~ long the most stubborn and anxiety-inducing component of household budgets ~ registered an unusual slowdown. Given the heavy weight that rents and shelter carry in inflation calculations, this shift alone explains much of the softer reading. Yet this apparent progress comes with caveats. The........