But could today’s surging prices really be as serious as the prolonged inflation shock of 40 years ago? Supply chain constraints could finally begin to abate, which would relieve a lot of the pressure on prices. No one is suggesting that people embrace Federal Reserve Chair Jerome Powell’s old line about inflation being “transitory.” But perhaps inflation is transitory-ish. Higher prices could lead to a phenomenon known as stagflation, the combination of stagnant growth and runaway inflation. The supply chain will need to improve and the demand side must slow,” she added.

Source: CNN June 01, 2022 16:51 UTC