The recent rise in core inflation is not just “noise” as Janet Yellen suggested and instead a large partof it is linked to a decline in the amount of spare capacity in a number of different sectors. Afurther rise in core inflation as the economic recovery strengthens will catch the Fed off guard.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services