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Will inflation stall at a high level or decline much further?

The Flip Side

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The Inflation Path From Here Is Highly Uncertain

Wages have been growing at or about 5% lately. This wage growth basically sets a floor on inflation, particularly services inflation. Services inflation that we're seeing won't change as long as the labor market remains this strong. When you put these pieces together, I think the only realistic way to get inflation lower from here will be to cause a recession.

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