Inflation will see an intense drop and could fall below 2% by mid-2024, Pantheon Macroeconomics says

• Inflation will see an intense drop, according to Pantheon's chief economist Ian Shepherdson.
• He pointed to easing price pressures, even as wage inflation is slow to return to normal.
• That means inflation could fall below the Fed's 2% inflation target by mid-next year, he said.

Prices are set to see an intense drop, and inflation could fall below the Federal Reserve's 2% target by mid-next year, according to Pantheon's chief economist Ian Shepherdson.

"We are becoming increasingly worried that inflation will fall below the target by the middle of next year," Shepherdson said in a note on Tuesday.

He pointed to pandemic-related drivers of inflation, like rents, consumer spending, corporate profits as well as energy and food prices, that are now reversing.