Economics
US Inflation Nearer 1980 Peak Than Thought, Summers Group Says
- Analysis shows June 1980 core CPI was 9.1%, not 13.6%
- Paper suggests more pain may be needed to stem inflation now
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US inflation is running even closer today to its 1980 peak, fresh analysis of historical price data shows, suggesting to the authors of the study that the Federal Reserve’s task of bringing price gains back to its target is similar in scale to that of then-Chair Paul Volcker.
A group of economists including former Treasury Secretary Lawrence Summers recalculated historical readings for the consumer price index to apply modern-day spending patterns, especially for housing.