Alberto Cavallo: Are We At An Inflation Inflection Point?

Published Mar 28, 2024, 6:00 AM

A turn higher in inflation carries with it the potential to disrupt the current easing plans of central banks and create volatility, in similar fashion to the market upsets that recurred throughout 2022. The evidence in the official data is mixed, and this week, we have a genuine expert to help us answer the question of whether inflation, having cooled somewhat, is in danger of rising once more. Alberto Cavallo, professor at Harvard Business School and co-founder of PriceStats, one of our research partners, is back with us. We discuss whether and where inflation risks are rising and what implications that carries for monetary policymakers who otherwise plan to begin lowering rates around the middle of this year.

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