I prefer this source compared to your favorite Faux News propaganda sources of bs, and also so-called liberals who tend to be more educated than repuke cult followers who tend to base their findings on facts aside from trolling fiction. Therefore, consider more and relevant and legitimate economic perspectives:
There were also signs that inflation broadened beyond a narrow range of goods impacted by the pandemic. More than 70% of the categories in CPI were up year-over-year versus only 7% showing a decrease, and more than half were up month-over-month. The Cleveland Fed trimmed mean CPI indicates that after stripping out the items with extremely large price changes, prices still rose 0.5% over the month.
But while inflation has been broader and lasting longer than previously expected, this is still a long way from being persistent inflation.
1. The average month-on-month inflation data still shows a declining trend. The average month-on-month rate of inflation in the second quarter rounded to 0.8% for both the headline and core measures. This slowed in the third quarter to a headline rate of 0.4%and 0.2% for the core. This continues to support the idea that inflation peaked in the second quarter and should continue to normalize as the global economy adjusts to reopening.
2. Goods and services impacted by surging demand due to the pandemic have started to normalize, with price increases slowing or reversing. Prices of used vehicles fell 0.7% over the month, following a 1.5% decline for August—though year-on-year prices were still up 24.4%. Apparel costs declined 1.1%, ending five months of consecutive increases. Our takeaway is that in areas where extraordinary surges in demand are fading, so is the spike in prices.
3. Policymakers show no signs of overreacting. The minutes of the Fed’s meeting of 21-22 September—admittedly before the release of the latest CPI data—continued to underline the central bank’s view that the economy will adjust to short-term supply constraints. Staff at the Fed “continued to expect that this year’s rise in inflation would prove to be transitory.” Over 2022, “the boost to consumer prices caused by supply issues was expected to partly reverse and import prices were expected to decelerate sharply,” the minutes read. The minutes also indicated that while the Fed’s plans to start slowing bond purchases next month were on track, this was not meant to signal anything about the possible timing of rate hikes—which remain some way off.
So, we do not expect a persistent rise in inflation that would force the Federal Reserve to tighten policy significantly more aggressively than currently planned. We advise investors to seek winners from global growth. With Fed policy remaining accommodative, we believe investors should seek unconventional sources of yield, including from private credit."
https://www.ubs.com/global/en/wealth-management/our-approach/marketnews/article.1547367.html
