WEST PALM BEACH, Fla. — Business analysts predict inflation will start cooling down as we head into 2023. However, they say the decline will take some time.
All eyes were glued to rising inflation in 2022, leaving many consumers wondering if that will continue in 2023.
“You always gotta be optimistic. New year so, might as well,” said Carmine Gialanella, who lives in West Palm Beach.
WPTV spoke with several people on Clematis Street in downtown West Palm Beach on Monday.
Some were optimistic that inflation will start to cool down this year, but others weren’t too hopeful.
“It just seems like we’re in a long ride on this inflation,” Veronica Amsler said. “I don’t think it will be in this year, unfortunately probably, maybe another one.”
“I do think it’s going to cool down. I think you can also see it in the prices. They seem to be coming down,” Tim Sheehan said.
According to the Consumer Price Index, inflation rose to 8.5% in 2022, which was the sharpest increase since 1981.
FED chairman Jermone Powell addressed it back in late November.
“It is far too early to declare goods inflation vanquished, but if current trends continue, goods prices should begin to exert downward pressure on overall inflation in coming months,” Powell said.
Many consumers are wondering how quickly that will happen.
“Inflation is already trending down. We hit a peak right before the fall. Prices are coming down,” Carl Gould, business analyst and founder of 7 Stage Advisors, told WPTV.
Gould predicts inflation could drop to as low as 2% to 3% this year, but he said it won’t be immediate.
“To get to the 2% to 3%, I think you’re looking at next holiday season. I would expect it to work it’s way downward through the spring and the summer and when you get to the fall, we’ll be right around that normalized price,” Gould said.
A normalized price is what South Floridians are ready for, sooner rather than later, as we head into the new year.
“That’s my New Years resolution is for inflation to go down. So hopefully we can make that happen,” Gialanella said.
“I do hope it’s over soon,” Amsler said.