Paul Krugman On Inflation: Soft Landing To Normal 'Looks Amazingly Within Reach,' But Isn't 'Guaranteed'

Recent consumer inflation data suggests that the U.S. economy might be on its way to a soft landing, according to Nobel laureate economist Paul Krugman, Business Insider reports.

This implies that the economy could return to normal inflation levels without a significant increase in unemployment.

See Also: Paul Krugman Asks If June Inflation Print Is Just Another Head Fake Or Real

“We haven’t touched down on the runway yet, and a soft landing isn’t guaranteed. But it now looks amazingly within reach,” said Krugman.

Despite the potential for a turn for the worse, the June inflation data strongly suggests a soft landing. This could prompt a reevaluation of the economic policy of the past few years, which Krugman believes has been “pretty darn good” if the inflation burst proves to be temporary and ends without major suffering.

Read Next: Rate Hike Speculation Cools As US Producer Inflation Softens