Access the Powerpoint slides of this month’s ET Pro monitors here.
Access the PDF version of the ET Pro monitor slides here.
Access the underlying Excel data here.
- We observed a curious combination for inflation narratives in August – a sharp drop in attention coupled with a sharp rise in cohesion
- We believe that the drop in attention reflects an even further erosion in focus by investors on inflation.
- We attribute this drop in large part to the rapid acceleration of attention to central bank policy narratives and continued peak levels of attention to trade and tariffs.
- The increase in narrative cohesion reflects the increasingly universal discussion of inflation as being ‘non-existent’ or ‘a challenge’ to create.
- Coupled with a rise in our fiat news measure, we believe that the equity market correction in August led to an increase in advocacy journalism – masquerading as news – arguing for stronger central bank action with ‘weak inflation’ as a justification.
- This remains an active narrative.