Institutional Investor (July 23)
2014/ 07/ 25 by jd in Global News
However you look at it, “positive inflation momentum is apparent” in the U.S. From the top down, unemployment has fallen. As slack lessens, “we may begin to see signs of this tightening appear in the form of wage growth.” And from the bottom up, there were “multiple factors that pushed inflation lower over the past 12 to 18 months: predominantly, disinflation from medical and core goods components.” But these were driven by unique events like the sequester and the strength of the U.S. dollar. “Neither the medical nor the core goods component is likely to be a drag on inflation going forward.”
Tags: Core goods, Disinflation, Dollar, Drag, Inflation, Medical, Momentum, Sequester, Slack, Tightening, U.S., Unemployment, Wage growth
