Cathie Wood says US inflation could fall sharply as Truflation hits 1.8%

Ark Invest founder says investors in Asia and Europe remain focused on inflation, while U.S. labor costs, productivity and alternative price data point to cooling pressures.

Summary

Ark Invest founder Cathie Wood said on June 25 that investors in Asia and Europe are still worried about inflation, but argued that U.S. inflation could decline sharply. She pointed to 0.5% year-over-year unit labor cost inflation, roughly 3% first-quarter productivity growth, and 3.5% hourly pay growth as signs that price pressures may be easing. Wood also cited Truflation, an alternative inflation tracker, falling from 11% in 2022 to 1.8%, with core Truflation at 1.4%.

Terms & Concepts
  • Truflation: An alternative inflation tracker using real-time data.
  • unit labor cost inflation: Change in labor cost per unit produced.
  • core Truflation: Inflation measure excluding more volatile components.