Inflation cooled more than expected in October. The index is now 7.7% higher than a year ago, a much lower increase than the 8% economists had predicted. That’s welcome news for consumers and the Federal Reserve after months of persistent price increases. But what does that mean for that elaborate Thanksgiving meal you’ve been planning? LA Times economy reporter Don Lee joined Lisa McRee on “LA Times Today” to explain.

Lee said that inflation is still much higher than it’s been for the past few years, but it is slowing down. Consumers have seen prices go up in all areas, especially groceries as they shop for Thanksgiving.  

“There’s good reason why turkey and poultry prices overall are running higher than grocery prices as a whole. They were up about 17%, according to the most recent data. We had bird flu, which meant that many growers were culling chicken and other poultry products. And then we just have other costs that are factored into grocery bills like higher shipping costs, transport costs for cardboard boxes and packaging. It just made this Thanksgiving bird a little more expensive,” Lee explained. 

Other areas, like cars and apparel, have seen prices start to wane. Housing prices could be next. 

“Sales of houses have been coming down and prices in many places are cooling significantly. So, that will eventually help lower inflation. But inflation for shelter makes up a big part of the overall inflation rate. Rents are a big part of that. And rents are negotiated. Usually, people negotiate yearlong leases. So, it won’t change right away. But over time, shelter costs will slow,” Lee said.   

As costs of living increase, wages have not kept up. Lee explained why some experts believe the U.S. could be heading toward a recession.  

“I think it’s unlikely that we won’t see it because the Fed is intent on getting inflation down to its target of around 2%. And we’re far from that. So, the Fed is expected to keep raising rates. And as it raises rates, consumers are going to pull back. And so, we’ll see the economy headed down,” he explained. 

Watch the full interview above.  

Watch “LA Times Today” at 7 and 10 p.m. Monday through Friday on Spectrum News 1 and the Spectrum News app.