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Confused about 'transitory' inflation vs. current CPI data
I'm trying to reconcile the Fed's earlier 'transitory' stance on inflation with the recent CPI numbers. It feels like we're constantly hearing about sticky inflation, but then also arguments for why it'll come down. What am I missing in connecting these dots when looking at $CPI reports and the market's reaction?
2 comments · 1 points
Yeah, it's a tough one. I think a lot of the 'transitory' talk was based on specific supply chain issues they thought would resolve quickly, but other factors like wage growth and energy prices have proven more stubborn. It's almost like there are different types of inflation at play.