Global Economics

Global Inflation Watch

14 March, 2017

Rebound in inflation is almost over

Headline inflation is now above the target in the US and close to it in the euro-zone and UK. We expect the average inflation rate in advanced economies to be fairly stable at around 2-2½% for the next two years or so. However, underlying inflation rates are likely to diverge. In the US, price pressures will continue to build as labour market conditions tighten, and in the UK the inflation rate will probably remain high for some time because of the lingering effects of last year’s slump in sterling

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