Rocky road: the lingering threat of inflation

坎坷路:通胀的持续威胁

Editor's Picks from The Economist

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2024-07-10

6 分钟
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A handpicked article read aloud from the latest issue of The Economist. Even as central banks make strides against blooming inflation rates, the long-haul promises instability.  Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+  For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.
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  • Hello, Alice Fullwood here, co-host of Money Talks,

  • our weekly podcast on markets, the economy and business.

  • Welcome to Editors' Picks.

  • You're about to hear an article from the latest edition of The Economist.

  • Thanks for listening.

  • The trajectory of inflation has not given central bankers much cause for celebration in recent years.

  • but at the European Central Bank's annual Jamboree in Sintra,

  • Portugal this week, a touch of self-congratulation has been in the air.

  • I know it sounds a little bit arrogant, confessed Christine Lagarde,

  • the ECB's president, on July 1st, but the unwinding of high inflation is remarkable.

  • We've made a lot of progress, said Jérôme Paule,

  • the chairman of America's Federal Reserve the next day.

  • Others agree central banks have risen to the challenge of high inflation commends the bank for international settlements.

  • The data do indeed merit some satisfaction.

  • After cumulative price increases between 2021 and 2023 of 15% in America and 18% in the eurozone,

  • annual inflation rates now stand at just 2.6% and 2.5% respectively.

  • yet the time for mutual backpatting may be brief.

  • Lower inflation, though welcome,

  • does not mean a return to the relatively stable economy that prevailed before the pandemic.

  • Several perils loom on the supply side, which could constrain growth and boost inflation,