Global Economics

Global Inflation Watch

20 March, 2019

Slowing activity reduces inflation risks further

We expect headline inflation to fall further below 2% in the coming months, largely due to a renewed decline in oil prices and an associated fall in energy inflation. The previous strength of economic activity has caused some price pressures to emerge, particularly in labour markets. But the global economy is now clearly slowing, implying that any capacity constraints will ease. Indeed, unemployment has already begun to rise in some major economies and wage growth seems to have stabilised. Meanwhile

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