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 the difference between core and headline inflation?

What factors could lead to deflation according to the text?

What is the current trend in wage numbers mentioned in the text?

How does global growth impact inflation according to the discussion?

What is the expected movement of core numbers in the next year as per the text?