Consumer Food Inflation Expectations and Estimates Drop
Main Takeaways:
* Both consumer food inflation estimates and expectations dropped from last month by 0.6 and 0.4 percentage points, respectively. * Consumers continue to lower food inflation expectations and estimates. * Food inflation rate remains steady at 2.2%.Details:
A central issue that has plagued the Biden administration for most of its term has been the steep rise in grocery prices. However, according to a recent report, consumer food inflation estimates and expectations have dropped from last month.
The food inflation rate remains steady at 2.2%. However, year-ahead price growth expectations for food, medical care, and rent declined to their lowest levels since at least early 2021.
Inflation remained rapid in 2022, compounded by the start of Russia's war in Ukraine, which helped to push up fuel and food prices. However, the recent drop in consumer food inflation expectations and estimates suggests that the Federal Reserve's efforts to tame inflation may be starting to take hold.
Conclusion:
The drop in consumer food inflation expectations and estimates is a positive sign for the Biden administration. It suggests that the Federal Reserve's efforts to tame inflation may be starting to take hold. However, it is important to note that the food inflation rate remains elevated. Therefore, it is too early to say whether inflation has been defeated.
Comments