Rethinking Inflation and Economic Indicators

David Rosenberg challenges the prevailing narrative regarding inflation, arguing that it is not a significant problem and will likely stabilize below 2%. He cites that the inflation surge experienced recently was a temporary phenomenon, lasting only 18 months, contrary to common perceptions that high prices equate to persistent inflation. Rosenberg emphasizes the importance of understanding inflation as the rate of change in prices rather than the price level itself, likening the current situation to past events under notable economists like Paul Volcker. He believes that central banks have shifted focus, and that underlying measures indicate a return to lower, more manageable inflation rates.