Michael Ashton of Enduring Investments on Inflation

The video discusses the current state of inflation, highlighting its cyclical and secular nature. It explains how prolonged inflation can lead to a vicious cycle, affecting interest rates and money velocity. The upcoming CPI report is expected to show core inflation at 4.2%, with a focus on broadening inflation trends and the impact of rising rents, especially as the eviction moratorium ends.

What can prolonged inflation lead to in terms of economic expectations and interest rates?

• Decreased money velocity

• Stable interest rates

• Increased inflation expectations and rising interest rates

• Deflationary pressures

What is the expected core consumer price inflation for the early part of next year?

• Around 5%

• Below 3%

• Exactly 4%

• Above 6%

What is the significance of the upcoming CPI report mentioned in the transcript?

• It will focus on energy prices

• It is expected to show core inflation at 4.2% year on year

• It will show a decrease in inflation

• It will not affect inflation expectations

Which component of inflation is expected to rise due to the ending of the eviction moratorium?

• Food prices

• Energy costs

• Used car prices

• Rents

What percentage of core inflation is attributed to rents?

• 40%

• 20%

• 30%

• 50%