Global Economics

Global Inflation Watch

15 March, 2016

Inflation to rise rapidly in the US, but not elsewhere

Headline inflation in most advanced economies should rise towards the end of this year, when the effects of the past slump in energy prices finally drop out of the annual comparison. Core inflation has already picked up in the US and, with the unemployment rate set to continue falling,it is likely to be well above the 2% target during 2017. We expect this to persuade Fed officials to raise interest rates further than is generally expected. I

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