US climate spending – how does it reduce inflation? – BNP Paribas Asset Management

Billions of dollars are set to be allocated to bolstering US infrastructure under the Inflation Reduction Act, a belated but still welcome boost to tackling climate change and runaway inflation. Truly two birds with one stone.

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... So how does the multi-billion dollar package help lower inflation over time? Next to lowering drug prices and healthcare premiums, the spending is set to create infrastructure that should – ultimately – have a deflationary effect on ‘everyday energy costs’ and household expenses.

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