WASHINGTON, D.C. — Today, the Bureau of Labor Statistics announced that inflation on all items increased 6.5% for the 12 months ending in December — down from 7.1% in November. Core inflation, which excludes energy and food prices, rose at a pace of 5.7% in December from a year prior slowing from 6% in November. The food-at-home index increased 10.8%. Real wages fell by 3.1%.
Independent Women’s Forum (IWF) produces a monthly Inflation Tracker on popular household items that women purchase.
Patrice Onwuka, director of the Center for Economic Opportunity (CEO) at IWF, issued the following statement:
“Price increases are finally slowing down as interest rates cool down the economy. But the inflation rate and core inflation are still frustratingly higher than before the pandemic, even as other economic measures are returning to pre-pandemic levels. Egg prices are about 60% higher than a year ago, and consumers are still stomaching double-digit price increases on many grocery basket items and necessities such as home heating costs.
“Households are stressed carrying the economic burdens of inflation into yet another year. Despite encouraging declines in prices on some goods, real wages are still trailing inflation leaving budgets tighter and savings more scant. Fears of recession are chilling consumers’ plans to purchase big-ticket items this year while rising interest rates sideline prospective homebuyers.
“Let’s not forget: unnecessary federal spending, especially in 2021, overstimulated the economy and triggered inflation levels not seen in a generation. After two years of massive new spending packages, Americans were promised restraint and fiscal responsibility. Let’s hope that new leadership in Congress makes good on those promises.”