The Hindu (February 15)
Reserve Bank of India Governor Shaktikanta Das proclaimed the worst of inflation was in the rear-view mirror. Five days later, January CPI estimates “revealed a disconcerting reversal in price gains trend. Headline retail inflation… quickened by 80 basis points last month to 6.5%. Propelling the acceleration was a 175 basis-points jump in food prices.” This “surprise reversal” suggests that “inflationary expectations in the economy are nowhere near anchored and will necessitate further policy action both from the RBI and fiscal authorities.”
Tags: Acceleration, Anchored, CPI, Economy, Expectations, Food prices, India, Inflation, Price gains, Reserve Bank, Surprise reversal
Bloomberg (April 18)
“The slower the Fed, the harder the landing.” Quick action while inflation expectations are “still well anchored” will minimize the “cost in terms of foregone output and higher unemployment.” Those costs will mushroom if the Fed “waits and allows inflation expectations to get out of hand.” A recession remains unlikely in 2022, but if there isn’t one “in the next couple years, it will only be worse.”
Tags: Anchored, Costs, Expectations, Fed, Inflation, Landing, Output, Quick action, Recession, Slower, Unemployment, Worse
