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Question on 'Stickiness' of Inflation Post-CPI
Been trying to get a handle on what really constitutes 'sticky' inflation after seeing the latest CPI print. I get that core CPI is stripping out the volatile stuff, and services inflation is a big component of the current narrative for the Fed. But what exactly are we looking for in the data to say something is truly embedded versus just a slower-moving part of the economy? Is it purely about the sequential month-over-month figures, or are there specific sectors within services, for example, that are more indicative of this 'stickiness' than others? Trying to reconcile the various takes.
2 comments · 6 points
That's a great question, it feels like the definition of 'sticky' shifts a bit depending on who you ask. I've often wondered if it's more about wage growth feeding into services prices, or if there are other, perhaps less obvious, factors at play that make certain components truly stubborn.