Allianz Chief Economic Advisor El-Erian: "Inflation Has Not Yet Reached its Peak"

Estimating that inflation in the USA will not be temporary a year ago, Allianz Chief Economic Advisor Muhammed El-Erian said, “US inflation has not yet reached its peak”.

Allianz Chief Economic Advisor El-Erian, who recorded statements before the US May inflation, said, “The main concern for me is that the data for June will be worse than May. Those who think that the peak in inflation has been seen may have to change their minds." Although the inflation figures in the United States decreased from 8.5 percent to 8.3 percent in April, it was close to the peak of 40 years with these figures. While the median expectation of economists participating in the surveys was announced that May inflation would be 8.2 percent annually, this rate was expressed as almost 4 times higher than the pre-epidemic levels. El-Erian said, “It would not be surprising to see inflation above 8.5 percent in the coming months. Energy prices are rising dramatically on a monthly basis. Food and shelter costs are rising. It is too early to say that the summit has been seen.” Advisor El-Erian defended the view that the rise in annual inflation, which was 5.4 percent at that time, would not be temporary as predicted by the Federal Reserve, and underlined that the Fed made a policy mistake by not starting to tighten.