Ahead of the release of the latest consumer price index reading this week, El-Erian said that headline inflation will probably come down to about 8%, but that core inflation is still going up.
El-Erian said that an increase in core inflation means that we still have an inflation problem.
El-Erian believes that core inflation will eventually come down even if it is still on the rise.
Does it come down to a downturn in the economy or a recession?
The largest oil supply cut since 2020 was announced by the Organization of the Petroleum Exporting Countries on Wednesday, and El-Erian said it could cause inflation in the US. He said the cut was not a surprise since the group is looking to protect oil prices.
He said that they do that. It is not good news for the United States economy.
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