Comparing actual CPI to predicted trends may reveal insights, Arin Dube expects

Comparing actual CPI to predicted trends may reveal insights, Arin Dube expects
Comparing CPI with pre-pandemic index

Economist Arin Dube highlights the potential analytical value of examining the difference between the actual Consumer Price Index (CPI) or Personal Consumption Expenditures (PCE) index—indexed at 1 in January 2020—and an index predicted from pre-pandemic inflation trends.

Dube expects that tracking this variable could possess significant predictive power in economic analysis.

The examination of evolving inflation metrics not only informs projections for broader economic trends but also raises questions about the distributional consequences of structural shifts in the economy. Similar concerns have been explored in depth through the lens of how automation impacts income distribution, as discussed in Arin Dube's analysis of the risks in automation impact on income distribution and aggregate demand.

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