The consumer price index (CPI), which tracks the changes in prices paid by U.S. consumers for goods and services, posted its largest gain in nine months on Wednesday.
However, EY’s Chief Economist Gregory Daco says that doesn’t mean inflation is the issue—consumer spending is.
“While pundits will focus on the pickup in headline inflation, nothing in this report screams reaccelerating inflation,” Daco wrote in a statement shared with Entrepreneur. “Despite all the noise, inflation is no longer a concern.”
The U.S. Bureau of Labor Statistics (BLS) reported on Wednesday that the CPI increased by 0.4% last month and that the energy index accounted for more than 40% of the increase. Energy
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