TIP - Krugman Says 'Inflation Really Looks Like Yesterday's Problem' As He Points To A Metric That Is Harbinger Of Fed Rate Cuts | Benzinga
The December consumer price inflation may have slightly overshot expectations but on Friday an economist underplayed the numbers and said pricing pressure could be a thing of the past.
What Happened: “Inflation is over,” said economist and Nobel laureate Paul Krugman in a New York Times opinion piece. The December consumer price inflation report was viewed by some as “evidence that disinflation has stalled,” while others found reasons for optimism, the economist said.
“Strange to say, the pessimistic takes generally came from the same people who warned a year ago that getting inflation down would be very hard and require high unemployment,” he said.
Referring to Friday’s producer price inflation report, Krugman said the number was “unanimously good.” The number, the economist said, is helpful to predict a third inflation ...