Yonhap Infomax NewsDec 17
The Bank of Korea warns that if the won-dollar exchange rate stays near 1,470 in 2025, consumer inflation could rise to the mid-2% range, citing exchange rate pass-through and supply-side pressures, while noting potential easing from base effects and recent oil price declines.
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https://en.infomaxai.com/news/articleView.html?idxno=95950
Bank of Korea Says Won-Dollar Rate Near 1,470 Could Push 2025 Consumer Inflation to Mid-2% Range

The Bank of Korea warns that if the won-dollar exchange rate stays near 1,470 in 2025, consumer inflation could rise to the mid-2% range, citing exchange rate pass-through and supply-side pressures, while noting potential easing from base effects and recent oil price declines.

Yonhap Infomax
acemaxxAug 3, 2023
The dynamics of underlying #inflation - looking at the y-o-y #core inflation figures says as much about last year’s price level as today’s - #BaseEffects can indeed have a very strong impact, chart @ING_economics
chadwJan 13, 2023

Over the past 6 months, cumulative US cumulative inflation was 0.9%. Which annualizes to 1.8%. Which is BELOW the Fed target.

I'm no expert, but 6 months seems a long enough period to rule out noise/volatility. The press and the public may not understand the base effect, but I'm willing to bet the Fed does. If they keep hiking when current inflation are below target, what are they aiming for?
#Inflation #FederalReserve #BaseEffects