Skip to main content

Core inflation has already peaked

The modest growth of unit labour costs and appreciation of the dollar this year suggest that core inflation is unlikely to rise much further. With inflation quiescent, we expect the Fed to continue raising interest rates gradually, and to move quickly to the side-lines next year as economic growth slows below potential.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.