Inflation will remain stubbornly high

Higher energy prices will make it tough to bring down inflation any time soon. In fact, the inflation rate might even float higher. Here’s why.

It was the most aggressive rate-hiking cycle for decades. Central bankers, spooked by the spectre of inflation, raised rates faster and further than at any stage since the 1980s. But inflation has remained stubbornly high. In fact, in America, it’s stopped falling altogether. The annual inflation rate was 3.1% in June last year. It was 3.2% last month—n…