Tuesday , 21 May 2024
Home Finance How Supply-Chain Snarls Made Everyone Wrong on Inflation
Finance

How Supply-Chain Snarls Made Everyone Wrong on Inflation


On inflation forecasting, everybody has a bit of egg on their faces. New research suggests that a misunderstanding of what was happening with global supply chains might be part of why.

When U.S. inflation first began to heat up in 2021, it was written off by many economists as largely a temporary thing. The interaction of reopening economies with the supply-chain snarls the pandemic had set off caused a burst higher in prices that wouldn’t last. Or, as Federal Reserve policymakers put it when they left rates on hold near zero in November 2021, “Inflation is elevated, largely reflecting factors that are expected to be transitory.”

Copyright ©2024 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



Source link

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Finance

More Cheese, Please: Farmers Are Squeezing Cows for Fattier Milk

Americans are eating more cheese and butter. That has dairy farmers scrambling...

Finance

South African opposition seeks to build on Cape Town success

Cape Town mayor Geordin Hill-Lewis gazed from the window of his office...

Finance

Japanese stocks rally as investors’ rate rise fears wane

Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT,...

Finance

European Banks Brace for Testing Times After Peak in Interest Rates

Jan. 12, 2024 10:52 am ET European banks head into 2024 with...