Al-Arian: The latest “OPEC +” decision was not surprising

Mohamed El-Erian said that the recent decision of “OPEC +” to reduce oil production by more than two million barrels per day, was not surprising, because the group is looking to protect oil prices in the face of falling demand, but it harms the US economy.

Before the release of the latest CPI reading this week, Allianz’s chief economic adviser said he expected the general inflation rate to fall to around 8%, but core inflation would still rise.

Core inflation is what measures the drivers of inflation and how extensive they are, so El-Erian said that an increase in core inflation means we still have an inflation problem.