'(Bloomberg) -- Underlying US inflation is seen rising at a monthly pace that corroborates the message from central bankers that interest rates will need to stay higher for longer .. price pressures are nonetheless proving sticky..'
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US Core Inflation Seen Corroborating Higher-for-Longer Fed, October 8, 2023
'Bank of Canada deputy governor Nicolas Vincent says businesses raising their prices more frequently than they did before the pandemic is contributing to higher-than-expected inflation.
Vincent made the comments Tuesday in his first speech as external non-executive deputy governor, a newly created role, to the Chamber of Commerce of Metropolitan Montreal.
In prepared remarks for his speech, which was delivered primarily in French, Vincent said price increases have been larger than normal and more frequent than before the pandemic – a trend that has persisted.
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That could be due to new technology – namely electronic price tags – making it easier to raise prices, and consolidation in some industries may be reducing the competitive pressures that make it harder to raise prices, the deputy governor said.
"Perhaps the biggest risk of all is the idea that recent pricing behaviour could become self-perpetuating," Vincent told the business audience. "If you continue to expect your suppliers and competitors to make frequent price changes, you might be more prone to do the same yourself, creating a feedback loop."'
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Frequent price increases by businesses contributing to sticky inflation, October 3, 2023
'Domestic food price inflation remains high around the world. Information from the latest month between May and August 2023 for which food price inflation data are available shows high inflation in many low- and middle-income countries, with inflation higher than 5% in 52.6% of low-income countries, 86.4% of lower-middle-income countries, and 64% of upper-middle-income countries with many experiencing double-digit inflation. In addition, 69.6% of high-income countries are experiencing high food price inflation. The most-affected countries are in Africa, North America, Latin America, South Asia, Europe, and Central Asia. In real terms, food price inflation exceeded overall inflation (measured as year-on-year change in the overall consumer price index) in 79.4% of the 165 countries for which food CPI and overall CPI indexes are both available.'
- World Bank,
Rising Food Insecurity, October 2, 2023
Context(Sticky inflation)(Severe impact of inflation) - '..strong .. inflation that is not coming down..'[Thomas Hoenig] has a Dire Warning About Where We’re Headed - '..Household Expense Data .. for 80 Years'