The acceleration in producer price (PPI) inflation so far this year has been narrower than was the case during the initial stages of the post-pandemic surge, which limits the risk of consumer price inflation taking off to the same extent. Nonetheless, the PPI data still point to the risk of core PCE inflation remaining persistently above 2%, which even the Warsh-led Fed may eventually be forced to respond to.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.