All opinions expressed in this article are solely the opinions of the contributors.
Though Inflation slowed from its peak, the latest CPI numbers show monthly consumer prices rose by 0.5%, an alarming reminder that prices remain entrenched. Some economists acknowledge it could have been worse, and more, like Treasury Secretary Janet Yellen, agree that the fight against inflation “is not a straight line.”
Straight Arrow News contributor Peter Zeihan sees a more dire road ahead. He argues that unless a major policy change is enacted, this level of inflation will be the “lowest we’ll see for several years.”
Excerpted from Peter’s Feb. 28 “Zeihan on Geopolitics” newsletter:
Over the past few years, every aspect of life has been trapped in a constant state of flux…thanks COVID. Unfortunately, the economy’s lack of stability forced inflation to skyrocket to 9%. The effect was devastating.
Supply chains catching up, a decrease in energy demands, and higher agricultural yields have ushered in a reduction in inflation rates. I suspect this trend will continue over the next few months, but it won’t last forever.
All this change and disruption (I’m talking electric infrastructure build-out, Ukraine War impacts, energy struggles in Germany and don’t even get me started on China) will gravely affect inflation rates.
Executive orders aren’t going to fix anything. We need sharp policy change. Without that, the low inflationary times of ’22-’23 will likely be the best we’ll see for a long time.
