Inflation may take some time to normalize, according to former Treasury Secretary Larry Summers, who pointed to the history of developed nations since the 1970s.
"Populism has never been stronger," he said. "Labor markets are super tight. Government debt ratios are at peak levels. Globalization is certainly no longer spreading and may be receding."
The Labor Department reporter earlier this month that the consumer price index, a broad measure of the price for everyday goods, including gasoline, groceries and rents, rose 0.4% in September from the previous month. Prices climbed 8.2% on an annual basis. Those figures were both higher than expected.in the economy remain strong, core prices – which strip out the more volatile measurements of food and energy – climbed 0.6% in September from the previous month.
Lawrence Summers takes part in the Globe Summit at the Kennedy School of Government at Harvard University. The hotter-than-expected figures seemed to confirm what Summers is saying: Inflation has broadened throughout the economy and will be difficult for the