Inflation Has Peaked.

Source: EconLog
by Veronique de Rugy

“My Mercatus Center colleague Jack Salmon put together this nice chart. It compares the inflation forecasts of different institutions and economists to what has actually happened since early 2021. Jack has followed closely the predictions of many institutions and economists and has tracked many more than are shown on this chart. Along with these projections came analyses, nearly all of which proclaimed, time and time again, that ‘Inflation has peaked.’ These predictions were also expressed with terrific confidence. Yet the performance of these models against reality goes to show that, while such models can be useful, we always must be careful not to put too much faith in their ability to predict the future.” (09/18/22)