(Finance) – As for US inflation, “most estimates predict that it will take 6 to 12 months for these declines in demand to calm the inflation rate. With demand slowing but still resilient, markets healthy jobs and the further and unfortunately lasting shock of the war in Ukraine, it should come as no surprise that inflation, while probably past its peak, is still high“. He stated this Thomas Barkinpresident of the Federal Reserve Bank of Richmond, in an interview posted on the central bank’s website.
“This, of course, is what drives us to stay the course“, he added.
When it was pointed out to him that inflation has fallen over the past three months, he replied: “I would caution that while the average has come down, the median remained high. This is because the average has been skewed by falling prices of some goods, such as used cars, which have risen unsustainably during the pandemic.”
“I saw one commentator celebrate that inflation without the ‘shelter’ item has gone down in the last three months,” he continued. “But, of course, we all know what people care about. They care about food and gas and shelter. Until we’re sure the things people care about are under control, I think we still have a long way to go“.
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