Inflation may have fallen below a 3% annual rate last month, which would be the lowest level in nearly three years and a potentially significant milestone as the Biden administration seeks to bolster Americans’ views of the economy before the November ...
WASHINGTON — Inflation may have fallen below a 3% annual rate last month, which would be the lowest level in nearly three years and a potentially significant milestone as the Biden administration seeks to bolster Americans' views of the economy before the November elections.
Economists have estimated that when the government issues the latest consumer price index Tuesday, it will show that prices rose just 0.2% from December to January for a third month in a row, according to forecasts compiled by data provider FactSet. Falling gas prices are expected to have slowed overall inflation.
And compared with a year earlier, inflation is thought to have cooled to 2.9%, down sharply from 3.4% in December. That would be the lowest year-over-year inflation figure since March 2021, when prices began spiking as a result of pandemic-related supply disruptions and higher consumer spending fueled by stimulus checks.
A decline in inflation below 3% would provide President Joe Biden with an opportunity to claim that price increases are steadily cooling even as the economy continues to grow and unemployment remains near a half-century low. Still, many Americans remain frustrated that the pandemic-related inflation surge — the worst in 40 years — has left average prices about 19% higher than they were when Biden took office.
Tuesday's data, if it proves to be as mild as expected, may also contribute to the “greater confidence” that Federal Reserve officials have said they need toRead more on abcnews.go.com