Amid the ongoing challenges posed by inflation, there are increasing reasons for prudent optimism. Recent data suggests that inflation is displaying signs of cooling to such an extent that the U.S. Federal Reserve decided to put a temporary pause on the raising of interest rates.

But before the war on inflation is won, policymakers will likely need to navigate a new set of factors adding to the complexity of the situation. 

Despite a decrease in inflation to 4% from its peak of 8%, the measures implemented by several first-world countries to address this issue, such as raising interest rates, have inadvertently heightened the risk of deflation and the potential for a recession.

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Source Fool.com