Daily Alert – Thursday 30th June 2022: Central bankers kiss low inflation goodbye

Mark NugentDaily Alert, June 2022

Daily Alert – Thursday 30th June 2022: Central bankers kiss low inflation goodbye

Good morning.

Yesterday’s major news came from the European Central Bank’s Forum in Portugal. The central bankers lined up to tell us the same thing: risks are mounting that the world is shifting to a regime of higher inflation. “I don’t think we are going to go back to that environment of low inflation,” says Lagarde. The Fed’s Powell and Bank of England Governor Bailey concurred.

Exactly what this means for central bank policy is not clear, but it probably and obviously means higher rates for longer. Time to start growing your own vegetables if you’re not already.

Today’s highlight will be the Fed’s chosen measure of inflation: Core PCE Price Index.

Have a great weekend when it comes.

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