High inflation will first reduce discretionary spending, and may have bigger second-round impact
This is the first of a series of commentaries on inflation and its implications
Inflation – as measured by the consumer price index – rose to a 16-month high in March 2022 and is widely expected to have climbed north of 7.5% year on year last month. Even the most conservative projections show that inflation could end up averaging significantly above 6% this year – which would be the highest in the last seven years.
Inflation – as measured by the consumer price index – rose to a 16-month high in March 2022 and is widely expected to have climbed north of 7.5% year on year last month. Even the most conservative projections show that inflation could end up averaging significantly above 6% this year – which would be the highest in the last seven years.