What Are Expectations of Future Inflation?

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Consumer prices in May were eight point six % higher than a year earlier. That was the fastest rate of annual inflation since 19 81. Expectations had been for something in the low eights. If you look at the month ond month momentum, consumer prices just lookd to be accelerating quite alarmingly.

America’s central bank raised rates by .75% yesterday—the biggest increase in almost 30 years. Whether that will help tame rising prices without triggering a recession is unclear. The poor performance of Russian tanks in Ukraine has led some to wonder whether the tank itself is obsolete. And the rousing, darkly humorous defiance of Ukrainian war anthems. For full access to print, digital and audio editions of The Economist, subscribe here www.economist.com/intelligenceoffer