Allianz Chief Economic Adviser El-Erian believes core inflation ‘is still going up’

Heidi Gutman | CNBC

Forward of the discharge of the most recent client worth index studying this week, Allianz Chief Financial Adviser Mohamed El-Erian informed CBS’ “Face The Nation” Sunday that he predicts headline inflation “will most likely come right down to about 8%,” however that core inflation “remains to be going up.”

Core inflation is what measures the drivers of inflation and the way broad they’re, so El-Erian mentioned a rise in core inflation means “we nonetheless have an inflation difficulty.”

Even when core inflation remains to be on the rise, nevertheless, El-Erian mentioned it is going to finally come down.

“The query is, does it come down with a slowdown within the economic system or a serious recession?” he mentioned on “Face the Nation.”

The oil producer group OPEC+ announced its largest supply cut since 2020 on Wednesday, and El-Erian mentioned this choice “does damage the U.S.,” because it dangers inflicting inflation to extend once more. However he mentioned the lower didn’t come as a shock because the group is seeking to shield oil costs within the face of declining demand.

“That is what they do,” he mentioned. “However it’s actually not excellent news for the U.S. economic system.”

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