U.S. Is a Long Way From Deflation, Economist O'Sullivan Says

The video discusses the risks of core versus headline inflation, emphasizing core inflation as a greater concern. It explores the current state of deflation and inflation, noting that deflation is unlikely without a recession. Current metrics like core PC and CPI are examined, with wage trends potentially influencing core inflation. The possibility of disinflation is considered, with global growth and commodity prices affecting inflation trends. Overall, slight upward pressure on core numbers is expected due to wage increases, but significant changes are not anticipated.

What is considered a bigger risk for the United States according to the speaker?

• Headline inflation

• Stagflation

• Core inflation

• Deflation

What condition does the speaker suggest is necessary for deflation to occur?

• A significant increase in wages

• A recession

• Rapid economic growth

• Stable commodity prices

What are the current percentages of core PCE and CPI mentioned by the speaker?

• 1.5% and 2.0%

• 2.5% and 3.0%

• 2.0% and 2.5%

• 1.9% and 2.2%

Which factor is mentioned as potentially pushing core inflation numbers up?

• Decreasing global growth

• Stable commodity prices

• Increasing interest rates

• Rising wage numbers

What is the speaker's expectation regarding the movement of core inflation numbers over the next year?

• No major change

• A rapid fluctuation

• A significant decrease

• A significant increase