Is inflation dead, or are rumors of its death greatly exaggerated?
Mohamed El-Erian, an eminent economist and the chief economic advisor at Allianz, does not find the “inflation dynamics” to be “encouraging.”
While speaking in an interview with CNBC on Monday, El-Erian explained that rampant price inflation has shifted from the goods sector to the services sector, which he warns is “much harder to contain.”
While the annual Consumer Price Index (CPI) slowed from 7.1 percent to 6.5 percent in December, the annual services inflation rate rose to a more than 40-year high of 7.5 percent, according to the Bureau of Labor Statistics (BLS)….