MetroIntelligence Economic Update by P. DUFFY
Federal Reserve releases new economic projections as inflation subsides
In conjunction with the Federal Open Market Committee (FOMC) meeting held on December 12–13, 2023, meeting participants submitted their projections of the most likely outcomes for real gross domestic product (GDP) growth, the unemployment rate, and inflation for each year from 2023 to 2026 and over the longer run.
Inflation tracker Producer Price Index flat in November, up 0.9 percent year-on-year
The Producer Price Index for final demand was unchanged in November after falling 0.4 percent and rising 0.4 percent in September. The indexes for both final demand goods and for final demand services were unchanged. The index for final demand increased 0.9 percent for the 12 months ended in November. The index for final demand less foods, energy, and trade services edged up 0.1 percent in November, the sixth consecutive advance. For the 12 months ended in November, prices for final demand less foods, energy, and trade services rose 2.5 percent.
Consumer Price Index up 0.1 percent in November and 3.1 percent year-on-year
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in November after being unchanged in October and down sharply from September (0.4 percent) and August (0.6 percent). Over the last 12 months, the all items index increased 3.1 percent versus 3.2 percent the previous month. The index for all items less food and energy rose 0.3 percent in November, after rising 0.2 percent in October but matching the increases in September and August. The all items less food and energy index rose 4.0 percent over the last 12 months, the same as in October.