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Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
Inflation Cools; Services, Consumers and Small Businesses Struggle
Some Respite on the Inflation Front
Inflation continues to show signs of easing, with the December 2022 CPI falling 0.1% month over month, the largest drop for this measure since 2020. Year over year, prices were up 6.5%. With the huge run up in prices early in 2022, the annual CPI numbers do not capture the rapidly changing landscape for inflation. A 4.5% energy component decrease, helped by a mild winter and falling fuel oil prices, contributed to the tame CPI reading. The shelter component continues to be a big reason CPI hasn’t fallen more, and if that segment is removed from the calculation, the month-over-month decline would have been 0.5% for December, which equals an annualized drop of 6.2%.
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