No. of Recommendations: 12
Janet Yellen: “transitory inflation”I dunno, that was correct, in the end. The transit just lasted a bit longer than they expected : )
US rolling-year monetary inflation broke out in early 2021, and was back down to that level two years later, one big "transient" bump in the road. A single step up in nominal prices, in effect.
newyorkfed.org: Multivariate Core Trend InflationThe norm since then has been higher than the norm before, but neither level is particularly high or troublesome (to date, anyway). All the prints have been in the 2.5% to 3% range for the last two years.
There are several things which can be expected to drive a country's local prices higher if they happened. For example a falling dollar, large government deficits, taxes on imported goods, trade disruption, or inappropriately low interest rates.
Jim
