I have been arguing for almost a year now, here and elsewhere, that US consumer price inflation would become sticky after a period of favorable disinflation going into the end of 2023. Wednesday’s hotter-than-expected data release, the third in a row, is evidence that this scenario is indeed unfolding.

The annualized three-month measure of core inflation is now 4.5%, notably higher than the corresponding six- and 12-month measures. What has yet to be widely recognized, however, are the policy implications of this if the objective is to retain the economic exceptionalism that has served the US well so far.

QOSHE - Fed Faces a Big Risk, But It’s Not the One Many Think - Mohamed A. El-Erian
menu_open
Columnists Actual . Favourites . Archive
We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

Fed Faces a Big Risk, But It’s Not the One Many Think

6 0
10.04.2024

I have been arguing for almost a year now, here and elsewhere, that US consumer price inflation would become sticky after a period of favorable........

© Bloomberg

Get it on Google Play