Lower Consumer Prices Help Slow Inflation

Consumer prices that took off last year are starting to flatten out as a wave of rising supply-chain costs starts to retreat. The Wall Street Journal reports the trends on store shelves may be another sign that inflation is starting to turn a corner.

Many companies raised their prices substantially last year to offset higher fuel costs, as well as for ingredients, parts and labor. Now, some of those costs are coming down.

Freight-payments group Cass Information Systems says inferred rates in its Cass Freight Index fell 2.2% in December and that U.S. domestic shipping prices are on track to fall 5% this year. Loose capacity and lower fuel costs could send costs even lower. 

Xeneta says spot container rates from Asia to the U.S. West Coast were down about 80% in December from the year before, and contract rates are also slipping.