News about inflation

From the @FT column by @martinwolf_, "What we must still learn about the great #inflation disaster: Past and present policymakers should ask more searching questions about the causes and impact of the price surge." #economy #markets #econtwitter pic.twitter.com/x1cDFX4cab

“As the US reported the latest in a string of poor #inflation figures, markets reined in their forecasts for rate cuts by the European Central Bank and the Bank of England, as well as by the Fed itself.” As captured by this @FT quote, the markets’ repricing of central bank cuts… pic.twitter.com/GNDAxFYRKT

The optimistic perspective on inflation is that latest numbers are noise so better off smoothing over 6 or 12 months. The pessimistic perspective on inflation is that it is turning back up. pic.twitter.com/xyMis7Z3ue

Core PCE inflation over the last 3 months was a 4.4% annual rate. That is higher than any time from Nov 1990 to Mar 2021. Yes, there were special factors, seasonal issues, etc. But there were also special factors & seasonal issues at various times in those previous 30 years.