Transitory Disinflation

Published on January 2, 2024 by Premium

Inflation declined rapidly largely due to onetime supply side improvements and will likely resurface as easing financial conditions rekindle demand. Improving supply chains and increases in labor force participation played a major role in moderating inflation by increasing the overall supply of goods and services. The Fed's restrictive policy also played a role by having some impact in dampening overall demand, but that policy in the process of being unwound. Household purchasing power remains very […]

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