El-Erian Confident in Inflation Decline But Warns of Rising Prices
PIMCO's Managing Director and economist Mohamed El-Erian stated that the current economic situation shows positive trends in interest rates and inflation. However, he emphasized that a rapid decline in consumer prices is unlikely.
Speaking at a financial summit, El-Erian noted that rising interest rates have contributed to a sense of relief in inflation indicators, but this does not guarantee immediate price reductions for consumers. The economist explained that many factors, including production difficulties and high distribution costs, continue to pressure markets.
Moreover, El-Erian indicated that while important economic indicators show progress, achieving complete price stability may take longer than anticipated. Consumers should be prepared for prices on various goods to remain high, even as inflation decreases.
The economist also discussed the influence of global economies on the American market, stating that instability in other countries could reflect on price levels in the U.S. He advises keeping an eye on economic news and adjusting to market changes.
In conclusion, El-Erian emphasized that central banks must act cautiously to avoid damaging the economic recovery achieved in recent months, highlighting the importance of balanced measures in monetary policy management.
