US inflation surged even further last month, raising fears that the world’s largest economy risks overheating as ultra-low interest rates and Joe Biden’s extravagant spending plans pump up growth.
Prices recorded their biggest jump since 2008 according to the Bureau of Economic Affairs, with an increase of 3.9pc on the year.
Opinions differ. So, place your bets, this is what makes markets.
As to my opinion, well, I dunno.
But I would note that near all of those who insist it is just a blip are those who also want to insist that lotsnlotsnlots of deficit spending is a thoroughly good idea, nowt can go wrong. And it’s entirely possible that they think the spending is great because there won’t be any inflation. But I think the way to bet is that they’re dismissing the inflation possibility because they love the spending.
That is, the inflation surely won’t happen crowd are talking their own political book which isn’t, quite, the way to do economics.