We're heading into the Jackson Hole Symposium and desks have started to bring colour on what could the Fed Chair say regarding prices and the overall economy
While headline prices have rebounded in July, we could see further downside, but this might be limited. The graph below shows the current inflation cycle closely following the 1970s pattern
Back in the 70s, high prices lasted for years. If this pattern is to be followed, we could see U.S. CPI re-testing the 2022 highs, this means that the Fed would be right to signal higher rates for longer
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