Stimulus checks have proven to be a lifeline for many citizens over the past year. But as the rate of inflation slows in 2023, are more stimulus checks even necessary?

The Consumer Price Index (CPI), the measure of the cost of consumer goods, had hit a worrying 9.1% in June of 2022. However, it had since dropped to 6.5% in December of 2022, a sign of cooler inflation. This presented some financial relief for the public, yet questions arose whether this modest decline was enough for stimulus to be taken off the table for 2023.

The answer seems to be no. Stimulus aid, it turns out, hinges on a range of economic indicators such as unemployment and consumer spending. States that issued tax refunds and stimulus checks in 2022 - such as California, Colorado, Idaho and New Jersey - are still finding ways to provide financial relief to those in need. California, for example, issued checks of up to $1,050, based on their income, tax-filing status, and household size. Colorado meanwhile, issued $750 rebates to those who had filed taxes by the October 17th 2022 deadline. Similarly, Idaho residents who had filed their taxes in 2020 and 2021 were eligible for a $300 rebate. Finally, New Jersey homeowners with incomes of up to $150,000 were eligible for a $1,500 tax rebate.

In the end, it would seem that inflation levels alone cannot predict whether stimulus checks will be necessary this year or not. While policymakers must carefully assess the state of the economy, states are taking action now to ensure the public gets the financial assistance they need.