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MNI: Just One-Third of High US Inflation Is Demand: SF Fed

(MNI) Ottawa
(MNI)

Half of PCE gains are linked to supply side where it's unclear when constraints will ease up.

Demand pressures account for just a third of the recent U.S. PCE inflation run-up, signaling price pressures may remain tied to how fast supply bottlenecks are resolved, according to a San Francisco Federal Reserve report published Tuesday.

Supply-side issues account for about half of elevated prices, with demand driving another third and the remainder coming from products not clearly tied to either, according to research by economist Adam Hale Shapiro.

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Demand pressures account for just a third of the recent U.S. PCE inflation run-up, signaling price pressures may remain tied to how fast supply bottlenecks are resolved, according to a San Francisco Federal Reserve report published Tuesday.

Supply-side issues account for about half of elevated prices, with demand driving another third and the remainder coming from products not clearly tied to either, according to research by economist Adam Hale Shapiro.

Keep reading...Show less