Inflation has steadily declined after reaching a four-decade high of 9.1% last June, even amid consistent warnings that consumer price increases tend to be “sticky” from a number of renowned economists and Wall Street investors.
Mohamed El-Erian, an advisor to Allianz and Gramercy and president of Queens’ College, Cambridge, said last year that inflation had become “entrenched” in the economy after Federal Reserve officials’ “gross mischaracterization” of rising prices as “transitory” in 2021. And in January, he argued that inflation would get stuck around 4% this summer amid “mounting wage pressure” from consumers. Even Federal Reserve Chair Jerome Powell has said that the path to lower inflation will likely be “bumpy,” noting at a press conference last month that core inflation, which excludes more volatile food and energy prices, remains an issue.
