Central Banks Need To Focus On What They Can Control
bondeconomics.substack.com
As expected, the U.S. headline inflation rate for March was punchy (possibly a short-term peak for the annual rate, at least), although core moderated. I am currently focussed on discussing the inflation experience of 2020-2021, and so I am not reading the entrails of the CPI report for predicting what is happening in the coming months. My view is that inflation is lagging indicator, and such entrail-reading is mainly useful for CPI components that have trend behaviour due to a smoothed construction methodology (e.g., housing). Various economic disruptions could easily move prices either way in the near run.
Central Banks Need To Focus On What They Can Control
Central Banks Need To Focus On What They Can…
Central Banks Need To Focus On What They Can Control
As expected, the U.S. headline inflation rate for March was punchy (possibly a short-term peak for the annual rate, at least), although core moderated. I am currently focussed on discussing the inflation experience of 2020-2021, and so I am not reading the entrails of the CPI report for predicting what is happening in the coming months. My view is that inflation is lagging indicator, and such entrail-reading is mainly useful for CPI components that have trend behaviour due to a smoothed construction methodology (e.g., housing). Various economic disruptions could easily move prices either way in the near run.