This requires enhanced models and better sectoral data to gauge underlying inflationary forces, improve forecasts, and guide the fine-tuning of policy responses. A first step in the right direction may involve collecting more frequent data for prices by sector and supply constraints to determine if key sectors are bumping against supply bottlenecks. Also, understanding structural factors such as how different sectors set prices and the links between them would provide additional valuable insights.
NEW RELEASE: Chapter 2 of the October 2024 World Economic Outlook takes an in-depth look at "The Great Tightening: Insights from the Recent Inflation Episode." Read here. https://lnkd.in/ev9ZPT-4
