CPI numbers may appear negative but underlying inflation is concentrated, Claudia Sahm argues

CPI numbers may appear negative but underlying inflation is concentrated, Claudia Sahm argues
CPI inflation pressures remain concentrated

Claudia Sahm notes that upcoming Consumer Price Index (CPI) headlines could be discouraging.

She emphasizes the importance of examining the distribution of inflation, arguing that current price pressures are limited to narrow categories and are not widespread. Sahm advises careful monitoring for any broader inflation trends.

Sahm has previously noted all-time low consumer sentiment alongside rising inflation expectations, raising questions about the reliability of survey data in recent months (link). She has also highlighted the Federal Reserve's focus on balancing inflation and the labor market following the pandemic under Jerome Powell's leadership (link). These observations have framed her views on interpreting new inflation data.

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