From the Macro to the Micro
Real Vision: Finance & Investing
00:00
What Are the Three Things People Aren't Talking About Enough Inflation?
Andreas: I think we have a huge discrepancy between the outlook for inflation on goods versus the Outlook for inflation on services. He says that given the change in consumption patterns through the pandemic, the updated weights in the inflation index back in January this year will favor a bigger sort of weight to the goods consumption as a consequence of all of the goods purchased by households during the pandemic. Andreas: If goods drop in price, even if service inflation remains sticky, then I guess the overall picture will actually look fairly benign for inflation until next year.
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