Inflation accelerated more than expected in June, and economists say it could be a 'long, hard slog' before prices begin to normalize, despite strong action by the Federal Reserve.
Federated Hermes chief equity strategist Phil Orlando and Sarge986 president Stephen Guilfoyle discuss how many more rate hikes it will take to slow inflation on 'The Claman Countdown.'
Experts say it could take some time for inflation to begin to cool off — and even then, that doesn't mean prices are going to fall for consumers. "The idea that we're going to be back anywhere near 2% inflation rate in the near term is fanciable," RSM chief economist Joe Brusuelas told FOX Business on Thursday. "It’s going to be a hard, long slog. A lot of heavy lifting on the part of the Fed.
The matter was complicated by bottlenecks at ports and freight yards, along with a lack of shipping containers, snarling the global supply chain. rose 7.5% in June from the previous month, and are up 41.6% from last year. Gasoline, on average, costs 59.9% more than it did one year ago and 11.2% more than it did in May. The food index, meanwhile, climbed 1% in June, as consumers paid more for items like cereal, chicken, milk and fresh vegetables.
"It’s not just a simple linear story of one segment experiencing higher inflation," Greg Daco, chief economist at EY-Parthenon, told FOX Business. "It’s really the combination of strong demand, insufficient supply and a rebalancing of the economy that is leading to this broad-based inflation."
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