Inflation is receding to more usual levels after climbing to above 9 percent in 2022. But we’re not out of the woods yet. Last week, the Federal Reserve identified persistent inflation as the biggest financial risk currently facing the markets. What relief is on the horizon looks like stabilization, not a return to prices of yesteryear. The Fed’s report may be unsettling, but there’s reason for optimism: higher inflation and interest rates may signal stronger demand and encourage productive capital allocation, say McKinsey senior partners Olivia White, Sven Smit, and coauthors in their new article. For these insights and more, check out the collection below.
Investing in productivity growth
Economic conditions outlook during turbulent times, December 2023
Inflation fighter and value creator: Procurement’s best-kept secret
Why you can’t tread water when inflation is persistently high
The Inflation Reduction Act: Here’s what’s in it
Inflation-weary Americans are increasingly pessimistic about the economy