Global | Coronavirus Watch: Why inflation fears are misplaced

July’s inflation figures, which revealed sharper-than-expected rises in core measures of inflation in the US, eurozone, and UK, suggest that core inflation is in a firm upward trend.


What you will learn:

  • The recent sharper-than-expected pickup in core measures of inflation in some advanced economies has led to renewed fears that higher inflation may be on the way.
  • Core inflation has risen over the last couple of months, but it generally remains a fair bit lower than at the start of the year.
  • Strong money growth could be a sign that the increase in core inflation is more than noise.
  • Similarly, fears that QE will eventually prove more inflationary than a decade ago by triggering sustained and large fiscal loosening isn’t borne out by governments’ own fiscal plans.

Topics: United States, Manufacturing, United Kingdom, Europe, Eurozone, Coronavirus

Coronavirus Watch Why inflation fears are misplaced - iPad