SFS Insights

Inflation Pulling Back

December 30th 2022

Long-term inflation expectations fell below 3% again, after inching up the last two months.

The Fed’s preferred inflation metric, the Personal Consumption Expenditure (PCE) deflator, fell last month. November core inflation eased to 4.7% from a year ago. Tight labor markets are driving up wages. Services inflation eased in November to 5.2% year-over-year from 5.5% in October.

Services inflation is starting to ease, but still running too hot for policy makers. The Fed will continue to increase rates, but likely at a slower pace. We expect the Fed to increase rates by 0.25% on February 1. We do not believe the economy is feeling the full effects of the current tightening cycle yet.

Robert Schermerhorn, CFP®

Jamie Usas, CFP®

Operations Manager

Amanda Friedman

Wealth Consultant

Andrew Chapman, CFP®

Operations Research Associate

Lauren Bliss

Office Coordinator

Saratoga Financial Services

18 Division Street, Suite 305

Saratoga Springs, NY 12866

Phone: (518) 584-2555

Securities & advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC