Once inflation rises above 5%, it takes an average of 10 years for it to return to 2%
In a recent research note Athanasios Vamvakidis, a strategist at Bank of America, analysed episodes of high inflation in advanced economies between 1980 and 2000.
Mr Vamvakidis found that once inflation rises above 5%, it takes an average of 10 years for it to return to 2%.
This suggests that the consensus view—that inflation in America will come down to 3% by 2024—may be too optimistic.
The Economist 30 September 2022
https://www.northumbria.ac.uk/about-us/our-staff/v/athanasios-vamvakidis/
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