Current Events in December 2023

Inflation was relatively flat last month as the Labor Department’s Consumer Price Index (CPI) rose just 0.1% from October. Over the last 12 months, inflation has averaged 3.1%, down from the June 2022 peak of 9%.

That suggests the Federal Reserve’s policy of hiking interest rates has been effective in bringing down prices. In November, gas prices were down, along with most energy commodities.

Used car prices continued to fall while the increase in grocery prices continued to slow, rising just 01.%, a much slower rate than restaurant prices.

One area where inflation remains fairly hot is in the labor market, which – if you're looking for a job – isn't so bad. But Oliver Rust, head of Product at Truflation, says that can contribute to higher prices

“We expect the strong employment situation will continue to put upward pricing pressure on services,” Rust told ConsumerAffairs. “As a result, we see the headline CPI index rising again to 3.5% by year-end. It will likely remain elevated for longer than anyone anticipates, so bringing the index down to the 2% target will be a difficult task for policymakers.”

If you had money in stocks or Bitcoin in November, you did very well. Wall Street enjoyed a strong rally on the belief that the Fed is getting inflation under control and will stop raising interest rates. 

Bitcoin remains volatile, selling off sharply this week after a huge rally in November that took the price of the digital currency to $43,000.

Hoping for a ‘soft landing’

But a “soft landing” – falling inflation without a recession – is far from certain and some traders have hedged their bets by purchasing gold. Though prices are at a three-week low this week, there are plenty of tailwinds that can provide support. For one, central banks and governments around the world have increased their purchases of the precious metal in 2023.

Bond yields are down from their recent highs but savers can still find certificate of deposit (CD) rates above 5%. According to Forbes, this week’s highest CD rate is 5.87% APY for a one-year CD. As an added benefit, the money is insured up to $250,000 by the Federal Deposit Insurance Corporation.

So, as economic conditions begin to reveal themselves, where’s the best place to put your extra cash? It’s advisable to consult an objective and trusted financial adviser before making any major moves.

But one legendary investor has made moves this year that suggest he is erring on the side of caution. Berkshire Hathaway Chairman Warren Buffet got Wall Street’s attention this week when it was disclosed that he sold more than $28 billion in stock in the first three quarters of 2023.

The question marks hanging over the economy may persist for at least another month.

Ford Motor Company is recalling 18,527 model year 2022 F-150 pickup trucks.

The parking lights may flicker when the headlights are activated.

Flickering parking lights can reduce visibility, increasing the risk of a crash.

What to do

Dealers will update the LED driver module software free of charge.

Trucks with high series headlamps that were recalled in 2022 and received an incomplete remedy, or have not yet been repaired, will need to have the new remedy completed.

Letters notifying owners of the recall are expected to be mailed January 14, 2024.

Owners may contact Ford customer service at (866) 436-7332. Ford's number for this recall is 23C36.

Many supermarket prices have leveled off over the last couple of months but the rising cost of sugar and salt contributed to grocery inflation last month.

The ConsumerAffairs-Datasembly Shopping Cart Index, which tracks the prices of 25 commonly-purchased items, rose from $156.55 in October to $157.19 in November. The cost of items in the shopping cost totaled $155.66 in November 2022.

That increase is well below the overall inflation rate, as measured by the Consumer Price Index (CPI), several items rose at a much faster rate. For example, a box of cookies costing $4.51 a year ago increased to $5.67 last month, a 25% jump.

A box of honey nut cereal, which cost $5.31 a year ago, rose to $5.56 last month. A loaf of honey wheat bread rose from $3.39 in November 2022 to $3.79 last month.

The price of paper products is also still rising. Select-A-Size paper towels cost $21.85 last month, up from $21.56 a year ago. Twelve rolls of toilet paper cost $12.84 in November 2022 but sold for $12.92 last month.

Among the items that dropped in price from a year ago were sliced cheese, eggs and whole bean coffee, whose price declined by 14.3%.

The Shopping Cart Index

Amazon is rolling out a new subscription plan for Prime members who order groceries. 

Under the new program, Prime members can opt in for unlimited grocery deliveries at $9.99/month. This means that members will receive their grocery deliveries over $35 with no extra delivery fees or charges. 

Additionally, with this new grocery plan, Prime members will get unlimited access to pick up grocery orders of any size. 

Right now, the program has launched in Columbus, Ohio, Sacramento, Calif., and Denver. Based on how these cities fare with the new program, and depending on Prime members’ feedback to the company, this will determine how Amazon moves forward with unrolling this option to more cities across the country. 

“We’re always experimenting with features to make shopping easier, faster, and more affordable, and we look forward to hearing how members who take advantage of this offer respond,” Tony Hoggett, senior vice president of worldwide grocery stores for Amazon, said in a statement. 

Still paying for a Prime membership

While the new plan for Amazon groceries will help consumers save some money on delivery fees, the monthly subscription fee comes in addition to the Prime membership fee. 

So, Prime members will have to pay the $9.99 per month for unlimited grocery deliveries with no delivery fees, and then either $14.99 a month or $139 a year for their Prime membership. 

“Amazon Prime, known for its annual fee of $139, has set a standard for seamless and cost-effective shopping, offering free Prime shipping on any order without the constraints of a minimum spending requirement,” Yoni Mazor, CEO of Getida.com, told ConsumerAffairs. “Introducing a dual-layered cost structure for grocery subscriptions may, however, be a tough sell for consumers accustomed to the simplicity of a single, comprehensive fee. 

“Amazon stands at a crossroads with its grocery subscription service,” Mazor continued. “To ensure widespread acceptance and customer satisfaction, the company should consider adopting a more value-centric packaging strategy. By focusing on delivering a seamless experience and incorporating additional perks, Amazon can steer clear of the pitfalls associated with layering costs and secure a competitive edge in the ever-expanding world of online grocery shopping.”

The evolution of Amazon grocery delivery pricing

Over the course of this year, Amazon’s grocery delivery pricing has gone through an evolution. 

In January of this year, Amazon upped its order minimum for all grocery order delivery fees – from $35 to $150. On top of that, the delivery fee was dependent on how much consumers spent on Amazon Fresh – the bigger their orders were, the less expensive the delivery fees were. 

Then, in August, Amazon opened up grocery deliveries to non-Prime members. While those without Prime memberships had access to Amazon grocery orders, their delivery fees were even higher than Prime members’ – between $7.95 and $13.95 just for delivery. 

After rising to nearly 8% in October, mortgage rates are falling. Over the last two weeks, the 30-year fixed-rate mortgage rate has fallen to 7.03%. Since the October high, rates have fallen 69 basis points, the fastest rate since the 2008 housing market crash.

“The 30-year fixed-rate mortgage averaged near 7% last week, down from nearly 7.80 percent just six weeks ago,” said Sam Khater, Freddie Mac’s chief economist. “When rates began to rapidly drop, purchase applications rebounded initially, but this improvement in demand diminished in the last week. Although these lower rates remain a welcome relief, it is clear they will have to further drop to more consistently reinvigorate demand.”

If so, how far do rates have to drop before affordability improves and buyers return to the market? Desiree Avila, a board-certified Realtor with CRR Fort Lauderdale, says buyers appear to be recovering from the shock of high interest rates and may be ready to buy if rates keep falling.

“I think in the range of the low 7’s, high 6’s can spur spending,”Avila told ConsumerAffairs. “Current rates have not deterred buyers completely, many are finding a way to make it work.”

For example, some buyers have resigned themselves to taking out a high-interest mortgage with a plan to refinance the loan when rates fall. Some buyers are buying down points for a time to reduce the up-front rate. 

There’s still pent-up demand

Avila says there continues to be pent-up demand. If rates continue to fall it could “unleash” a flurry home home-buying. 

“Over the next six months, I am hopeful we will dip into the 6’s,” Avila said. “This would mean reversing a year of interest rate hikes, so I don’t think it will be in the low 6’s, but the high 6’s.

A drop in home prices might also help buyers get back into the market but so far this year, there is little evidence of that. In spite of 8% mortgage rates, the National Association of Realtors (NAR) reports the median home price in October was $391,800, a 3.4% increase over October 2022.

Total housing inventory at the end of October was 1.15 million units, up 1.8% from September but down 5.7% from one year ago. 

Peg Perego USA of Fort Wayne, Ind., is recalling about 550 YPSI and Z4 inclined sleeper bassinets.

The bassinets, which were marketed for infant sleep, violate the Safe Sleep for Babies Act as they have an incline angle greater than 10 degrees, and do not have a stand.

Infant fatalities have occurred in some inclined sleeper products after the infants rolled from their back to their stomach or side while unrestrained, or under other circumstances.

No incidents or injuries are reported.

This recall involves compact bassinets that were sold individually or as an accessory to the Peg Perego YPSI and Z4 stroller systems.

The bassinets have a zip-on boot, insert pad and a foldable canopy.

The Z4 bassinets have an “Agio” label on the side of the canopy. Only bassinets manufactured on or after June 23, 2022, are included in this recall.

The manufacture date in YYYY/MM/DD format and model number are located in the hood/head area of the bassinet and can be found by lifting the bassinet’s pad/cushion and internal lining.

A list of the colors and model numbers, located beneath the date code, may be found here.

The bassinets, manufactured in Italy, were sold online on Amazon.com, Albeebaby.com, Strolleria.com, and other websites, and at Baby First Furniture and other stores nationwide from July 2022, through April 2023, for about $250.

What to do

Consumers should immediately stop using the recalled bassinets and contact Peg Perego for instructions on how to receive a full refund or repair instructions for the recalled bassinets.

Consumers who purchased their bassinet for a stroller system or with a stand will be given instructions on how to disable the backrest recline adjustment feature.

The company will offer a $50 cash incentive for consumers who provide proof of backrest disengagement for bassinets part of this recall.

Consumers who purchased the bassinet alone should return it for a full refund.

Peg Perego and Amazon are contacting all known purchasers directly.

Consumers may contact Peg Perego toll-free at (877) 737-3464 from 9 a.m. to 5 p.m. (ET) Monday through Friday, by e-mail at bassinet@pegperego.com or online at https://us.pegperego.com/store/pegus/en_US/recalls for more information.

Garland Ventures of Garland, Texas, is recalling approximately 13,842 pounds of ready-to-eat chicken fried rice.

The product may be contaminated with Listeria monocytogenes.

There are no confirmed reports of adverse reactions.

The following item, produced on November 10, 2023, is being recalled:

• 12-oz. trays containing Freshness Guaranteed brand “CHICKEN FRIED RICE DICED CHICKEN MEAT WITH VEGETABLES AND RICE IN A SAVORY SOY SAUCE” with lot code WK10CFR and a best if used by date of 11/10/2024 represented on the label.

The recalled product, bearing establishment number “EST. P-31993” inside the USDA mark of inspection, was sold at retail locations nationwide.

What to do

Customers who purchased the recalled product should not consume it, but discard or return it to the place of purchase.

Consumers with questions may contact the firm at (972) 485-8878, or by email at evelyntsai@ballyplus.com or phoebehsu@ballyplus.com.

Ford Motor Company is recalling 5,118 model year 2022-2023 F-150 Lightning pickup trucks.

The SYNC software may fail to activate the electronic stability control (ESC) system at the beginning of each ignition cycle.

Failure of the ESC to reset to active may result in the driver unknowingly operating the vehicle without electronic stability control, increasing the risk of a crash.

What to do

The Accessory Protocol Interface Module (APIM) software will be updated by a dealer or through an over-the-air (OTA) update free of charge.

Owner notification letters are expected to be mailed December 18, 2023.

Owners may contact Ford customer service at (866) 436-7332. Ford's number for this recall is 23C38.

Sleep issues are bad enough for a growing number of Americans, but a new study raises the question that some parents may be overdosing their own children with melatonin.

So much, in fact, that the number of melatonin ingestion cases reported to poison control centers across the U.S. increased 530% from 2012 to 2021 – and most of those were children younger than five years old. 

New research from the University of Colorado Boulder, published in JAMA Pediatrics, shows that nearly one in five school-aged children and preteens now take melatonin for sleep, and some parents give the hormone to preschoolers on a regular basis.

That word “hormone” should be taken seriously, too. Some researchers have their hand in the air, raising questions that since melatonin is a hormone, could taking melatonin theoretically affect hormonal development? Research has yet to conclusively say yes or no to that question, but the possibility still looms. 

The fact that gummies look and taste like candy also poses another risk.

A sleep doctor raises even more questions

How slippery of a slope is giving melatonin to children? The Sleep Doctor, Dr. Michael Breus shares his thoughts on the negative effects of melatonin in children with ConsumerAffairs.

“This saddens me to see these numbers because once again we are not thinking about the health of our children,” he said.

“I do not believe we should give pills to kids to sleep. It gives the wrong message, and in the case of melatonin, it's usually not doing any good. There are very few cases where a child would actually require melatonin, and all of those would fall under either having a deficiency or Autism.”

Breus also doubled down on the fact that melatonin is a hormone and parents need to realize that, in most cases, children make over four times the amount of melatonin they need, making this completely unnecessary.

Melatonin has “significant” interaction effects with other medications, too he said – including antidepressants, diabetes meds, and blood pressure meds.

“If a child is on one of these for any reason their treatment may be affected. Ninety-nine percent of parents are overdosing their kids, and we have no idea what this effect can have in the future.”