What To Expect From Inflation For The Remainder Of 2023

The Fed is broadly satisfied with cooling inflation for the U.S. economy over recent months, but will it continue? As 2023 draws to a close, there are some risks to inflation’s trajectory, specifically housing, services and energy will in combination, likely define inflation’s path.

Recent Trends

So far in 2023 inflation has generally moved lower. Headline Consumer Price Index inflation started the year running at an over 6% annual rate, and as of September is under 4%. Core CPI, which strips out food and energy prices, has also moved lower, but at a slower rate.