Janet Yellen: “transitory inflation”

I dunno, that was correct, in the end. The transit just lasted a bit longer than they expected : )

US rolling-year monetary inflation broke out in early 2021, and was back down to that level two years later, one big "transient" bump in the road. A single step up in nominal prices, in effect.
https://www.newyorkfed.org/research/policy/mct#--:...

The norm since then has been higher than the norm before, but neither level is particularly high or troublesome (to date, anyway). All the prints have been in the 2.5% to 3% range for the last two years.

There are several things which can be expected to drive a country's local prices higher if they happened. For example a falling dollar, large government deficits, taxes on imported goods, trade disruption, or inappropriately low interest rates.

Jim

Berkshire Hathaway FAQ

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