28th March 2024
T. Rowe Price: Current market inflation expectations are ridiculous
Raise your hand if you honestly thought year-over-year U.S. headline consumer price index (CPI) inflation would peak in June 2022 at 9.1% and stay above 6% into early 2023. I expect to see very few hands—forecasts for inflation from 2021 through 2023 were wildly inaccurate. Even many central bankers and most economists got it wrong and were forced to rethink long-standing assumptions about inflation. Put your hand down if you even whispered “transitory.”

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