Skip to content
Markets
Economics

El-Erian Warns Inflation Has Yet to Peak as Energy Prices Rise

  • A future CPI number above 8.5% ‘wouldn’t surprise me’
  • Base case is stagflation, US recession is ‘risk scenario’
Video player cover image
Mohamed El-Erian, a Bloomberg Opinion contributor, says predictions that US inflation has peaked are premature. “Those who boldly said inflation has peaked and is coming down may have to change their minds,” he says on Bloomberg Television. Source: Bloomberg

Mohamed El-Erian, who almost a year ago accurately forecast that elevated US inflation would be persistent, says it hasn’t peaked. 

The closely followed bond-market strategist agrees with monthly consensus estimates for May’s consumer price index to be reported on Friday, but told Bloomberg Television’s The Open on Thursday that “what worries me is that the June month-on-month print will be worse than the May month-on-month print. Those who boldly said inflation has peaked and is coming down may have to change their minds.”