How Inflation Spike May Go From Transitory to Long-Lasting

How Inflation Spike May Go From Transitory to Long-Lasting

An overheating economy -- either because demand rebounds faster than expected, supply disappoints, or some combination of the two -- is the fastest route to durably higher inflation. If that occurs, Bloomberg Economics’ general equilibrium models show inflation in the euro area and U.K. moving significantly above expectations. In the U.S., a flatter Phillips curve means a more muted impact.

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