Consumer prices have once once more risen more sharply than expected. This shows that in an environment of high inflation, it is becoming increasingly difficult to break the momentum. The central banks have to act, even if the stock exchanges don’t like it and it costs growth. Otherwise they lose their credibility – and it gets really expensive.
Filling the shopping cart has become much more expensive for Americans.
Thanks to Goethe, we’ve actually known it since our school days: “The ones I called up, the spirits, I can’t get rid of now.” Fiscal and monetary policies in the US and Europe have allowed inflationary forces free rein for too long, hoping that following years of fairly stable prices and low interest rates, active anti-inflationary policies are a thing of the past. These forces don’t just stop doing their mischief once more.
