Inflation to rise in 2017, but still room for EMs to keep rates low

Inflation is set to rise in most emerging economies in 2017 as the drag from lower oil prices continues to unwind. Even so, with underlying price pressures in check, the jump in fuel inflation is unlikely to push headline inflation above central banks’ targets. Accordingly, there is scope for interest rates to remain at their record lows in a number of places.

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