Template-Type: ReDIF-Paper 1.0
Author-Name: Laurence M. Ball
Author-Name-First: Laurence
Author-Name-Last: M. Ball
Author-Email: lball@jhu.edu
Author-Workplace-Name: Johns Hopkins University
Author-Name: Daniel Leigh
Author-Name-First: Daniel
Author-Name-Last: Leigh
Author-Email: dleigh@imf.org
Author-Workplace-Name: International Monetary Fund
Author-Name: Prachi Mishra
Author-Name-First: Prachi
Author-Name-Last: Mishra
Author-Email: prachi.mishra@ashoka.edu.in
Author-Workplace-Name: Ashoka University
Title: The Rise and Retreat of US Inflation: An Update
Abstract: Why did US inflation rise over 2021-22 and why has it retreated since then? Ball, Leigh, and Mishra (2022), writing near the inflation peak, explained the rise with a framework in which inflation depends on three factors: long-term expectations; the tightness of the labor market as measured by the vacancy-to-unemployment (V/U) ratio; and large changes in relative prices in particular industries such as energy and autos. This paper finds that the same framework explains the retreat in inflation since our earlier work. 
length: 55
Creation-Date: 20260918
Revision-Date: 
Publication-Status: 
File-URL: https://dp.ashoka.edu.in/ash/wpaper/paper169_0.pdf
File-Format: Application/pdf
Number: 169
Handle: RePEc:ash:wpaper:169