Fed research suggests the inflation engine may be running differently across advanced economies since the pandemic: 1/ More categories continue to see price growth above 3%, with broad-based wage growth in services appearing to be a key driver 2/ Even categories with flat or falling prices aren't pulling the overall number down the way they used to 3/ Pre-pandemic models consistently underpredict current inflation, suggesting the relationship between price dispersion and aggregate inflation may have shifted https://www.federalreserve.gov/econres/notes/feds-notes/is-the-inflation-process-in-advanced-economies-different-after-the-pandemic-20260330.html(Nick Timiraos)