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Analysis – What to infer from inflation outliers

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Price shocks, or ‘outliers,’ raise general inflation if they ‘infect’ core prices and wagesThis happened in the 1970s and early 1980s, on the occasions of the two big oil shocksHowever, it has not happened (in ‘advanced’ economies) since the mid-1990sCurrent conditions do not se...

 

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Analysis – What to infer from inflation outliers

Price shocks, or ‘outliers,’ raise general inflation if they ‘infect’ core prices and wagesThis happened in the 1970s and early 1980s, on the occasions