‘Don’t Take Disinflation For Granted’: Two Charts And A Lot Of Words

Admittedly, the "risk of inflation re-acceleration" talking point is a bit tired by now. Over the past three years, everyone was forced to become an expert on the constellation of factors that can contribute to undesirably elevated prices, including supply chain frictions, conflict-driven disruptions and labor market mismatches. On the demand side, the read-through of stimulus, easy financial conditions and the so-called "wealth effect" from higher asset prices, can (and did) exacerbate the sit