U.S. Inflation & Price Pressures Report: February 2024
Cooling inflation was the story of 2023, with the annual rate falling from 6.4% in December 2022 to 3.3% a year later. However, several categories showed signs of solidifying price growth in recent months as many of the factors helping cool inflation – such as the unwinding of supply disruptions – are becoming less prevalent. At the same time, consumer spending and wage pressures remain robust, presenting a combination that, if persistent, could hinder sustained moderation of inflation.
- Slowing inflation in late 2023 provided a boost of economic optimism, but further moderation could face challenges as price growth remains elevated for many goods and services.
- Strong consumer demand is adding upside risk to inflation as many U.S. adults appear less determined to resist price increases for most categories.
- Measures of supply tightness have improved, however the loosening cycle for inventories is showing signs of stabilizing – potentially indicating less price relief from goods in the coming months.
About the author
Kayla Bruun is a senior economist at decision intelligence company Morning Consult, where she analyzes consumer spending, inflation and household finance trends, leveraging the company’s proprietary high-frequency data.
Prior to joining Morning Consult, Kayla was a key member of the corporate strategy team at telecommunications company SES, where she produced market intelligence and industry analysis of mobility markets.
Kayla also served as an economist at IHS Markit, where she covered global services industries, provided price forecasts, produced written analyses and served as a subject-matter expert on client-facing consulting projects.
Kayla earned a bachelor’s degree in economics from Emory University and an MBA with a certificate in nonmarket strategy from Georgetown University’s McDonough School of Business.