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And things will be much worse if the Federal Reserve and other central banks mistakenly respond to higher headline inflation by raising interest rates.
But the ECB worries that the higher headline inflation may become entrenched through "second round" effects as workers demand higher wages and firms become readier to raise prices.
There is a danger that higher headline inflation will be misread, even as rising energy costs sap demand.Vince Reinhart of the American Enterprise Institute worries about a replay of the summers of 2007 and 2008.
As Tim Duy writes in an excellent post on the subject:If you are making a short-term bet on higher headline inflation, primarily you are making a bet on energy and food.
But Mr Trichet's concern is that higher headline rates could push up inflation expectations, leading to bigger pay demands, and so trigger a wage-price spiral, as in the 1970s.
With a jobless rate of 10.2% and oodles of idle capacity, America still faces a bigger threat from deflation than from inflation.The risk is that higher headline inflation is misinterpreted as a sign that policy is too loose.
Similar(50)
For Atlantic cod (Gadus morhua) we found a significant topless effect for the low headline trawl but no effect for the high headline trawl.
Both Democrats and Republicans want to overhaul the corporate tax system, which combines a high headline rate with endless loopholes.
India suffers the worst of all worlds on corporate tax, he said: it has a high headline rate of 30%, yet it yields meagre revenues.
With the backing of some BSS shareholders and a high headline price before synergies, we expect this deal to go through smoothly.
Using high headline numbers (i.e. explicit and prominent quantification of maximum potential benefits) may attract participants and set higher targets that result in higher performance, but it might also lead to lower satisfaction and program abandonment.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com