Our view that core inflation will increase faster than the Fed expects is based on expectations that both rent of shelter and medical inflation will continue to rise and that an acceleration in wage growth will generate a more widespread pick up in price pressures. A new upside risk comes from the recent evidence that some businesses have started to widen their margins.
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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services