LIBERTY STREET ECONOMICS
The Layers of Inflation Persistence MartÃn Almuzara, Marek Jarocinski, and Argia Sbordone This post extends analysis of the multivariate core trend introduced in April 2022 to data through November and detects signs of a decline in the persistent component of inflation. Dissection of the sectoral layers of inflation persistence shows the results are consistent with President Williams "onion" metaphor that identifies the three important layers of inflation as core goods, core services ex-housing, and housing. However, while the housing sector stands apart, the differences between the recent evolution of core goods and services ex-housing are smaller and subtler. |
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