US inflation spiral compares to a stadium stampede

Por • 23 nov, 2021 • Sección: Economía

By David P. Goldman

Philadelphia Fed reports inflation momentum at 1970’s level

November 19, 2021. Inflation momentum rose sharply in October, according to the Philadelphia Federal Reserve Bank’s October survey of US manufacturing. The Philly Fed report usually anticipates broader surveys of US output and prices. In a classic inflation spiral, customers accelerate purchases in order to buy before prices rise even further, worsening supply constraints and forcing prices higher.

The Philly data are diffusion indices that reflect change from the previous month, not absolute levels of prices or output. They measure inflation momentum, not the level of inflation as such. Sigue en…

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