Allianz Chief Economic Adviser Mohamed El-Erian said on CBS’ “Face The Nation” Sunday that he expects headline inflation to “probably fall down to about 8%” this week before the release of the most recent consumer price index reading, but that core inflation “is still moving up.”
El-Erian stated that an increase in core inflation indicates that “we still have an inflation issue” since core inflation measures the causes of inflation and how widespread they are.
El-Erian predicted that core inflation will eventually decline even if it is now rising.

He remarked on “Face the Nation” that the question is whether it coincides with a slowdown in the economy or a significant recession.
El-Erian stated that this decision “does affect the U.S.,” as it raises the possibility of inflation rising once more. On Wednesday, the oil producer organisation OPEC+ announced its greatest production cut since 2020. He added that the group’s efforts to maintain oil prices in the face of weakening demand meant that the drop was not unexpected.
He declared, “That’s what they do.” But it’s unquestionably bad news for the American economy.