US economy might witness 'second chapter' in epidemic price rise

(MENAFN) The new year carried with it hope that a long, painful season of high inflation was finally ending, but the U.S. economy may not be out of the woods yet.

In a message to clients last week, Ben Emons of the Connecticut-based NewEdge Wealth cautioned that “there are signs of a second chapter in the pandemic price surge,” mentioning higher than estimated inflation readings in the world. The signs include an unpredicted rise in the Spanish inflation rate after a five-month period of slowing cost expansion, before rises in the consumer price signs in Australia, Japan and Italy.

In making his case, Emons – a senior portfolio manager – mentioned Fed research shared last month that proposes inflation has become more coordinated internationally and is caused by many of the same factors, counting housing, energy and transportation. The study shows that if inflation increases in many developed countries, it might increase in the U.S. too.

“These are all forces in the works here,” he informed FOX Business. “Inflation has not gone to sleep. Inflation never sleeps. It’s higher, and it’s going to stay higher. It may go higher.”


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