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Are falling prices good for the economy?

Falling prices are not generally good for the economy, though. Here are four things to keep in mind. Inflation has fallen sharply — from a peak of 9.1% last year to just 3.1% in November. That's giving the Federal Reserve a lot of comfort, even though policy makers still want inflation to ease more.

Is the economy in a bad place?

Inflation rates, especially for food prices, have spiked quickly and are being felt hardest by those earning lower wages. These price increases have led many people to believe the economy is in a bad place, but experts say the opposite. Here's why.

How did the consumer price index affect inflation?

The Consumer Price Index, a measurement of the average change in prices for a commonly purchased basket of goods and services, dropped 0.1% from May, which helped to slow the annual rate of inflation to 3% from 3.3% in May, according to the Bureau of Labor Statistics’ latest report.

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