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Three Factors That Could Change the Course of Inflation

07/25/2022

By: Jeffrey Roach, PhD, Chief Economist, LPL Financial, Jeffrey Buchbinder, CFA, Equity Strategist, LPL Financial, & Lawrence Gillum, CFA, Fixed Income Strategist, LPL Financial

For the past year, supply-related problems contributed more to inflation than demand-related imbalances, but that may be changing soon. There are at least three factors that could change the course of inflation. First, the improvement in shipping and general supply bottlenecks could ease inflation. Second, strength in the U.S. dollar could offset some of the current inflationary pressures. And third, importĀ  prices have moderated since the beginning of 2022 and as import prices slow, we expect consumer prices to eventually reflect the slowdown in import prices.

Read the full commentary here: Weekly_Market_Commentary_7.25.2022

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