Americans grow more confident about the economy, even as the Fed's inflation fight continues

To many consumers, it probably doesn’t feel like a big improvement.

But after two years of breakneck inflation that sent the cost of everyday goods and services surging, 2023 experienced a meaningful slowdown in price growth.

After it hit a high of 9% in the summer of 2022, the 12-month rate of inflation measured 3.1% in November. Economists forecast the rate to have remain unchanged for December. The Bureau of Labor Statistics will announce the latest data at 8:30 a.m. Thursday.

The rate will still be above the Federal Reserve’s inflation target of 2%. And the fact that prices in most cases aren’t actually reversing means the shell shock of the past 24 months for consumers is still wearing off.