US Inflation Looks Entrenched, With 2% Emerging as a Floor
Updated
Updated · FT Adviser · Jul 14
US Inflation Looks Entrenched, With 2% Emerging as a Floor
3 articles · Updated · FT Adviser · Jul 14
Summary
2% now looks more like a floor than a ceiling for US inflation, marking a shift from expectations that price pressures would fade back toward central-bank targets.
Higher inflation is increasingly seen as entrenched because the earlier “transitory” view has lost credibility, suggesting price gains may persist rather than quickly normalize.
That change matters beyond a single data point: it implies the US may face a longer period in which inflation stays structurally above the level policymakers once treated as the destination.