Today's Scoop:

Hey friend - layoffs are picking up. Make sure you have an emergency savings in cash that can last you 4-5 months.

Make sure your bank is paying you at least 5%. Try this service that aggregates high-paying accounts from different banks into one interface. Big banks aren’t paying much.

Here’s what you need to know today…

1. Inflation seems to be under control.

2. Wages are finally catching up to living costs.

3. It has been a historic year for worker strikes and walkouts.

S&P 500: 4,643.70
1Mo: +5% | 1Yr: +16% | 5Yr: +79%

The market floated to its highest level in nearly two years today after an encouraging inflation report. The S&P 500 is less than 4% from a complete recovery and a new all-time high.

Inflation seems to be under control, but that doesn’t mean things are getting cheaper. Living costs edged up slightly last month. The Bureau of Labor Statistics' Consumer Price Index (CPI) increased by only 0.1% in November, up 3.1% from last year. Prices at the pump fell 6%, but grocery and dining costs kept inching higher. When stripping out more volatile food and energy prices, core CPI rose 0.3%, up 4.0% from a year ago. Clothes, furniture, and recreational stuff got a little cheaper. Higher home prices and rental costs are still the most significant inflators, but government home pricing statistics are always a little stale and funky. This, combined with a more balanced supply and demand in the jobs market, is what policymakers want to see. We’ll find out tomorrow if they will change their interest rate policies.

Wages are starting to catch up to rising living costs. The Labor Department reported real average hourly earnings for all employees increased by 0.2% in November after an increase in October. When adjusting for inflation, wages are up 0.8% from a year ago. That’s not huge, but it’s an encouraging sign that our economy is getting healthier. Rising living costs have strained most Americans. In a consumption-driven economy, a healthy consumer is paramount.

Workers in the United States waged a historic battle this year to secure higher pay and better conditions. Across several industries, strikes and walkouts led to 4.5 million days of work stoppages in October, the most in four decades. From Hollywood actors to airline pilots, delivery workers, healthcare providers, auto workers, and casino employees, Americans earned living wages and protections against harsh conditions and competing technologies like AI. This labor movement reignited the influence of unions across the US.

(These links only work for 24 hours while the story is live.)

View company rankings based on your votes▶️

What is the Consumer Price Index (CPI)?

The Consumer Price Index (CPI) is one of the main ways economists track inflation. Inflation is the rate at which things get more expensive. The CPI looks at a set basket of stuff your average consumer spends money on and tracks how much it costs each month. The rate of change is inflation.

Prices rarely go down. It's normal for things to get more expensive. You'll never be able to buy a Coke for a quarter again, but that's okay. Low inflation (~1-2% per year, 0.0-0.2% per month) is standard and almost unnoticeable. High inflation, like we saw last year, with prices of essential goods going up nearly 7-10% per year, is a problem. It's unmanageable, especially if our incomes aren't rising in tandem. Low inflation, where incomes keep up or outpace rising living costs, is the goal for economic policy, not zero or negative inflation.