The rate of inflation is measured by the Consumer Price Index (CPI), which tracks a basket of goods and services to determine how much prices are rising (or falling) compared to the same time a year ago. The U.S. Federal Reserve has a goal of keeping the annualized inflation rate at 2%, but economic conditions this year pushed the CPI in June to a 40-year high of 9.1%.

That quick rise triggered an aggressive response from the Fed, which raised interest rates to slow the economy and try to help lower inflation. Meanwhile, consumers are contending with higher prices on lots of everyday items as well as higher mortgage and credit card rates. Together, this has placed a lot of pressure on household finances.

But there is mounting evidence that June's red-hot inflation number might have been the peak, as the CPI has trended down ever since, with the annualized rate in November coming in at 7.1% -- marking a low point for 2022 so far.

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Source Fool.com