Can inflation respriral higher? Morgan Stanley’s Caron thinks it can.

Bloomberg/Vildana Hajiric and Micahel P. Regan/2-4-2023

“Aside from all the geopolitical potential risks, the risk that keeps me up at night is that we get this decline in inflation in the first half of the year, which we know is happening, but all of a sudden we realize in the second half of the year that it’s not anchored — it comes down, but then all of a sudden it starts to show signs that it may start to bubble up in 2024 and beyond.”

USAGOLD note: Inflation is a process, not an event.