And I expected inflation's got a lot of momentum.

The best single measure to look at for inflation is a kind of super core measure, which is wages.

Or you can look at the median component of inflation.

They've just been running strong for a long time and not decelerating.

So I think teen transitory is engaged in a lot of wishful thinking.

And I must say that I'm struck by the hypocrisy of some friends of mine like Paul Krugman,

who are very quick now to focus on housing and the fact that the private indices lead the public indices,

or the private indices are looking soft, but we're entirely unwilling to credit that argument

or to pay attention to the private indices some months ago when the private indices were obviously pointing to an acceleration of inflation.

So I think we've got to be very, very careful here if we want to be credible about concaining inflation.

How much momentum is built into inflation? How can you tell? What are you looking at right now that's telling you what happens in the fourth quarter and as we go into next year?

I'm looking at core measures. I'm looking at super core measures that take housing out, take use cars out in addition to taking food and energy out.

I'm looking at the so-called median inflation component, whatever product it is that's right in the middle. I'm looking at the so-called trimmed mean that looks at the middle half of the distribution of product prices.

And very crucially for me, I'm looking at wages, which is a kind of super core measure because labor goes into everything.

And all of those are saying that inflation is not really coming down very fast if it's coming down at all and that it's way above the 2% target or any acceptable level.

Besides the CPI numbers, Larry, a very big story throughout the week has been and continues to be great Britain, where you had the Bank of England come in with your emergency buying of long-term guilt that is due to expire on Friday the end of this week.

Same time we now have Liz Truss coming out and making some changes. Give us your attake on what's going on in the British economy and more importantly the management of the British economy.

Look, I think this is probably going to be a textbook case of crisis creation followed by crisis mismanagement. I'd be surprised if we were in the 17th inning of this particular set of challenges.

I have said before that people now I think understand very clearly that when you do a military intervention, you should never give a sunset date when you're going to leave because it just emboldens the opposition.

I think something similar is true of last resort finance where the kind of deadline the Bank of England gave I think is asking for trouble down the road.

So I think we're going to see more tremors more after shocks more problems. At the same time, I think we need to recognize that as serious as the British policy errors were, this might well not have happened if global economic conditions were more normal and the kind of excesses we've had in the system mean we're in very complicated territory.

Okay, welcome. It's Friday 14 October in the year of our Lord 2022. That's Larry Summers former Secretary Treasurer. He's running to be the next secretary treasurer.

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