Many forecasters expect that annual inflation will soon ebb. Yet some indicators point to more price pressure to come in the near term
in many places is now even lower than it was in the early days of the covid-19 pandemic. “Real-time” economic indicators of everything from housing activity to manufacturing output suggest that economic growth is slowing sharply.
You might be forgiven for not taking these prognostications too seriously. After all, most economists failed to see the inflationary surge coming, and then wrongly predicted it would quickly fade. In a paper published in May, Jeremy Rudd of the Fed made a provocative point: “Our understanding of how the economy works—as well as our ability to predict the effects of shocks and policy actions—is in my view no better today than it was in the 1960s.
Inflation worry-warts can point to three other indicators suggesting that the rich world is unlikely to return to the pre-pandemic norm of low, stable price growth any time soon: rising wage growth, and increases in the Faster wage growth in part reflects public’s higher expectations for future inflation—the second reason to worry that inflation might prove sticky. In America expectations for average price increases in the near term are rising fast. The average Canadian says they are braced for inflation of 7% over the next year, the highest of any rich country. Even in Japan, the land where prices only rarely change, beliefs are shifting.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Even the 'nice' problems at Manchester United will need Ten Hag's attentionThere are issues of varying sizes at Manchester United. Some might even be considered 'nice' headaches - but amid all of the dysfunction at Old Trafford, Erik ten Hag's problem-solving skills are about to be put to the test. MUFC 📝 Ankaman616
Consulte Mais informação »
Netflix ads are an excellent idea, and I'm not even sorryThink there’s nothing good to watch on Netflix? Ads will help.
Consulte Mais informação »
Barbados holds a 'special place' in the Queen’s heart - and here’s why you should goBarbados recently became a republic, so there’s no better time to visit what the Queen called a ‘beautiful country’. I stayed at O2 Beach Club & Spa, and here's why you should visit the Caribbean island…
Consulte Mais informação »
Why Arduino has set a course towards uncharted watersThe CEO of Arduino talks us through the company's drive to bring its microcontrollers to production environments
Consulte Mais informação »