Lates News

French foreign trade bank economist Christopher Hodge believes that the overall increase in energy prices will take some time to reflect in core inflation. He said, "The rise in overall inflation is immediate and as expected, but energy shocks typically take longer to transmit to core inflation. As higher transportation costs and energy inputs gradually transmit, this impact will be reflected in core prices but will also be partially offset by the decline in real purchasing power and weakening consumer demand. We expect core CPI (annual rate) to remain in the range of 2.6% to 2.9% in the coming months."