January 6, 2023
IT'S IMPOSSIBLE TO OVERSTATE DEFLATIONARY PRESSURES:
What if Inflation Suddenly Dropped and No One Noticed? (Alan S. Blinder, Jan. 5, 2023, WSJ)
To be fair, no one noticed the inflation either, just gas prices.Maybe we should start the new year with some good news: Inflation has fallen dramatically.No, that's not a prediction; it's a fact. With one month remaining in 2022 (in terms of available data), inflation in the second half of the year has run vastly lower than in the first half. In fact--and this is astonishing--it's almost back down to the Federal Reserve's 2% target. Even more astonishing, hardly anyone seems to have noticed.
Posted by Orrin Judd at January 6, 2023 1:40 PM