The Inflation Game

Reuters has an interesting piece that looks at the evidence on both sides of the argument as to whether or not we can expect our global inflationary woes to be sticking around for a while. 

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Making the case that inflation is fleeting and that the latest flare up has largely been snuffed at this point, the author points to falling energy prices, supply chain improvements, and wages that aren’t seeing the kind of upward pressure that might normally coincide with labor markets being tight as they are.

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On the other hand, those who predict that inflationary problems will remain ongoing can reinforce their position by pointing to increased demand as a result of China’s lockdown abating, as well as historical precedent from the last period of comparable inflation in the 1970’s, which took about 6 years to recede down to a 3% annual rate.

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You can read more about this analysis here.