Is the Link Between Inflation and Unemployment Broken?

In past periods of high inflation, rapid cost-of-living increases only subsided amid rising unemployment. Since the summer of 2022, annual inflation as measured by the consumer price index has fallen for 10 months straight while unemployment has hovered near 50-year lows.

Chart: Investopedia / Diccon Hyatt Source: Bureau of Labor Statistics via Federal Reserve Economic Data
Investopedia