About Those Inflation Fears
Via Cardiff Garcia at FT Alphaville, Inflation is falling everywhere:
(Charts via Capital Economics.)
... It’s probably worth noting that the wild fluctuations in the headline rate have had only a muted impact on core inflation in the past decade. Just something to keep in mind when you start hearing calls for policy action at the first hint of commodity price gyrations.
Capital Economics writes that there is divergence among some of the bigger emerging economies, with India and Brazil headed in opposite directions, but across the developed world the story is similar (though Japanese inflation expectations are heading higher, and are now above the eurozone’s, by one popular market measure):
Posted by Mark Thoma on Wednesday, May 8, 2013 at 11:02 AM in Economics, Inflation |
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