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Why Inflation Will Dissipate | Bilal Hafeez

Forward Guidance

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The Future of Inflation

People have been talking about peak inflation for a long time, and it hasn't happened yet. Base effects are in the favor of the transitory camp because maybe you could explain that better than I can. My sense is Q2 will be an important turning point for inflation. And secondly, we'll have more clarity around the pandemic becoming endemic. The wildcard within all this is really oil prices to some extent. In January alone, there was almost like a 50-80% rise in oil prices; my sense is we won't get similar increases every month thereafter.

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