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null Is There Historical Evidence of a Rapid Moderation of Sudden Double-digit Inflation?

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Is There Historical Evidence of a Rapid Moderation of Sudden Double-digit Inflation?
03 Oct 2022
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Clock 5 mins.
CATEGORIES: AER Global AER Personal Global US Europe Macro Global Monetary Policy
ANALYSTS:
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Leopoldo Torralba
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Ignacio De la Torre
Currently, there is an unprecedented amount of uncertainty surrounding the economic impact of future inflation and ongoing interest rate hikes. Economic players are debating whether double-digit inflation could be reduced by half in just a year. As such, we have analysed the performance of inflation in the past to check whether this has ever occurred, and if so, under which circumstances. And, we have also compared past and present conditions to determine the most likely scenario for future inflation, pointing out key risks.
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