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CPI crossed the 2% threshold in March 2021, meaning we've only just barely had 1 year of >2% CPI. If inflation were to nosedive over the next 6-9 months, it wou
by axg11 4y ago
CPI crossed the 2% threshold in March 2021, meaning we've only just barely had 1 year of >2% CPI. If inflation were to nosedive over the next 6-9 months, it would be pretty easy to argue that the inflation was transitory.
I'm not taking sides in the "inflation is transitory" debate, merely saying that it is too early to tell.
- milkytron 4y agoMaybe it is too early to tell, but the Fed had argued this as a means to keep rates low. Hindsight is 2020, but it seems like the Fed has put themselves in a reactive situation and are now playing catch-up.
- danielmarkbruce 4y agoPlus, look at the correlation between energy prices and CPI (not just the energy category) and you see energy ripple through everything... It can go down fast, pulling CPI with it.