The Consumer Price Index, the leading measure of inflation in the U.S., rose 7.1% in the 12-month period ending in November, according to Bureau of Labor Statistics data released on Tuesday.
According to the BLS, 7.1% is the lowest inflation has been since December 2021.
After the Consumer Price Index jumped 5.2% just in the first seven months of the year, it has increased just .6% from August through November.
"It is going to take time to get inflation back to normal levels as we make the transition to a more stable and steady growth," President Joe Biden said on Tuesday. "But we could see setbacks along the way as well. We shouldn’t take anything for granted. But what is clear is that my economic plan is working, and we’re just getting started."
In November, inflation rose just .1% as energy prices fell during the month. The price of commodities also took a significant drop for the second straight month.
Biden noted this as the holidays approach.
"Prices of things like televisions and toys are going down, and it’s good news for the holiday season. Used car prices fell for the fifth month in a row. New car prices didn’t go up this month. That savings is critical to so many families. It gives them just a little bit of breathing room for the holiday season," he said.
But food prices continued to climb, going up .5% in November. Overall, food prices have outpaced other goods, going up 10.6% for the year.
The drop in inflation comes amid rising interest rates. The Consumer Price Index is down from 8.2% just two months ago and a high of 9.1% in June.
The Federal Reserve said its goal is to reduce inflation to around 2%. The Federal Reserve is poised to raise interest rates again on Wednesday, but at a smaller rate than previous rate hikes.
Federal data indicates that wages are starting to catch up to inflation. Average U.S. wages increased 5.1% in the last year to an average hourly wage of $32.82 in November. Wages in November alone increased .6%, federal data indicates.