Expectations Matter: Why This Inflation May Stick Around
Both the CPI and PPI came in hotter than expected. The oil shock from the war is spreading to other prices, and once inflation gets into expectations, it’s much harder to bring down.
Americans Feel the Pain of war
Inflation rose to 3.7% in September, driven by a 34.2% jump in gasoline and 74.2% in fuel oil. Core inflation sits at 2.6%, and real wages are falling.