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Inflation report is a mixed bag – an economist explains why some items are rising faster than others

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Edouard Wemy Clark University 

To start the year, economists who were worried about rising inflation received some positive news: Inflation has slowed. On Jan. 12, the first report card for 2023 on consumer prices showed that overall costs of goods and services fell to 6.5% in December. This is the slowest pace in over a year, and down from 7.1% in Nov.

But there’s bad news too, especially if you are an egg-munching renter fond of frequent regular haircuts. In many cases, the cost to live rose even faster than in other categories.

That’s because price inflation isn’t uniform. Many factors can affect different products and services. While prices fell in December, slowing inflation’s annual rate, some products and services remained higher.

The Conversation asked Edouard Wemy – an economist from Clark University who never sets off to work without his morning breakfast of two eggs, sunny side up – to explain how different items in the consumer price basket fared in the latest inflation report.

Energie

When you look at the detail of the latest report on the consumer price index, you’ll see that overall energy costs declined. That’s because there was a…



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