Easing in the Middle of Persistent Inflation May Worsen Stagflation Risk

Commentary
In the next quarter of 2024, when more than 70 countries will hold elections, which frequently results in significant increases in government spending, thirty big central bankers are expected to reduce rates. Additionally, the most recent inflation statistics reveal a frequent annualized increase in consumer prices.
In the United States, headline Personal Consumption Expenditures (PCE ) inflation in February will likely grow by 0.4 percent, compared with a 0.3 percent rise in January, and consensus expects a 2.5 percent annualized rate, up from 2.4 percent in January. This is in addition to the previously 20 percentage accumulated prices of the previous four years. Core prices will probably show a 0.3 percent get, according to Bloomberg Economics, which means an annualized 2.8 percentage, building on top of the price rises of the previous times….

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