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Is inflation getting worse May 2022?

Inflation will end 2022 at a still-high 8.0% rate, but should drop to 3.5% by the end of 2023. Price growth will slow as the economy slows next year.

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Kiplinger’s Economic Outlooks are written by the staff of our weekly Kiplinger Letter and are unavailable elsewhere. Click here for a free issue of The Kiplinger Letter or for more information. Inflation eased to 7.7% in October – still high, but an improvement over September’s 8.2% rate. This is the first sign of a long-expected improvement in monthly inflation reports that should bring the rate down to a little above 3% by the end of next year. An easing of the rate of increase in non-food, non-energy prices suggests that the underlying growth rate most responsible for inflation’s momentum has peaked and may be on a slow, downward path. Medical care inflation eased significantly as new information about health care insurance premiums was included. Price increases for new cars moderated, while prices of used cars fell for the second month. Clothing prices declined for the second month, as well. The largest price category, rent, rose at a slower pace. (Rent increases are expected to remain strong in the index for a while because of the length of time it takes for leases to come up for renewal.) As a bonus, price increases for groceries eased as well, with their smallest rise in almost a year. Subscribe to Kiplinger’s Personal Finance Be a smarter, better informed investor. Save up to 74% Sign up for Kiplinger’s Free E-Newsletters Profit and prosper with the best of Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of Kiplinger’s expert advice - straight to your e-mail. Sign up Inflation Cools in October: What the Experts Are Saying (opens in new tab) Not all was rosy, though: Auto insurance rates are still rising strongly, in tandem with the cost of repairs. Restaurant prices are maintaining strong upward momentum and hotel rates jumped in October. Gasoline prices bumped up moderately. The Federal Reserve will likely see this report as justification to dial back its next short-term interest rate hike to a 0.50-percentage point at its next policy meeting on Dec. 15, instead of the 0.75-percentage-point increases it had been making. The easing in broader underlying components of the inflation rate is what the Fed is looking for, and not just decreases in gasoline prices. However, there is still inflationary momentum in the economy that the Fed is worried about. Wage increases are slowing, but are still high. These could generate further rounds of price increases as businesses try to maintain their profit margins.

Consumer Price Index historical tables

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Where is gold mostly found?

About 244,000 metric tons of gold has been discovered to date (187,000 metric tons historically produced plus current underground reserves of 57,000 metric tons). Most of that gold has come from just three countries: China, Australia, and South Africa.

About 244,000 metric tons of gold has been discovered to date (187,000 metric tons historically produced plus current underground reserves of 57,000 metric tons). Most of that gold has come from just three countries: China, Australia, and South Africa. The United States ranked fourth in gold production in 2016. All of the gold discovered thus far would fit in a cube that is 23 meters wide on every side. Most of the gold that is fabricated today goes into the manufacture of jewelry, but gold is also an essential industrial metal that performs critical functions in computers, communications equipment, spacecraft, jet aircraft engines, and a host of other products.

Learn more: USGS commodity website for gold

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