Why Inflation Could Peak in the Next Month, According to Morgan Stanley

Morgan Stanley believes inflation could peak within the next month as several temporary pressures begin to ease. The bank pointed to a “trifecta” of inflation drivers that have pushed consumer prices higher in recent months. Analysts expect energy prices and shelter costs to stabilize later this summer, which could help cool overall inflation readings. However, the firm also warned that the Federal Reserve is still likely to keep interest rates elevated as inflation remains above its long-term target.