© Archyde.com “Mohamed El-Erian”: US inflation has not reached its peak yet
Economist Mohamed El-Erian believes that the United States has not reached its peak yet, with expectations that energy costs will continue to rise.
“My concern is that the June inflation reading on a monthly basis will be worse than May, those who said that inflation has peaked and is slowing down may have to change their mind,” Allianz’s chief economic adviser said in an interview with Bloomberg.
The US consumer price index rose 8.3% in April on an annual basis, compared to 8.5% in the previous March, but it is still close to its highest level in 40 years.
El-Erian added: “I will not be surprised if you see a rise in the consumer price index by 8.5% in May, because inflation drivers are on the rise, as energy prices may rise significantly on a monthly basis, and we also see pressures related to housing and food, and therefore from the previous It is too early to consider that inflation has reached a peak.
The economist noted that if the labor market remains strong with wages recovering, the Fed’s effort to slow inflation may not work.