Mark W Olson: Enterprise-wide compliance-risk management Remarks by Mr Mark W Olson, Member of the Board of Governors of the US Federal Reserve System, At the Fiduciary and Investment Risk Management Association’s Twentieth Anniversary Training Conference, Washington, DC, 10 April 2006.
While the persistence in non-food manufactured products inflation is high, the persistence of food inflation has increased making the overall inflation rate sticky. The current inflation process, therefore, is an amalgam of both supply constraints and demand pressures. Prolonged high inflation even if originating from supply side would give rise to increased inflation expectations and cause general prices to rise.