Supply Constraints and Inflation, Revisited

Inflation has slowed considerably over the past few months. The Personal Consumption Expenditures Price Index (PCEPI) grew at a continuously compounding annual rate of just 1.1 percent from October 2022 to December 2022. Energy prices, which have fallen nearly 7 percent since October, explain a big chunk of the decline in headline PCEPI inflation. Indeed, […]