Krugman: Inflation rate vindicates those who counseled calm
One of my go-to economic data experts emailed Thursday morning about the latest inflation report, which showed prices actually falling in June and up only 3% over the past year; it was, he declared, “beautiful.”
Your aesthetic sense may vary, but we’ve now had two months of really good price data, enough to puncture the bubble of pessimism that, um, inflated early this year. And the implications of the good news are pretty big.
Early this year we had several bad reports, which led to widespread concern that inflation had stopped falling and might even be increasing; some even suggested that the Federal Reserve might want to increase interest rates rather than begin cutting.
Many economists argued, however, that the bad data was just noise, largely reflecting one-time price resets at the start of the year. They have now been vindicated.
https://www.heraldnet.com/opinion/krugman-inflation-rate-vindicates-those-who-counseled-calm/