A scenario where US inflation remains very high in 2H22 and medium-term inflation expectations rise is plausible and could prompt much more abrupt Federal Reserve tightening than expected.
Until just a week ago, Turkey (against all the odds) seemed to be doing well again, said Reza Karim, assistant fund manager, Fixed Income. Inflation had come down from 25% last year to 9%. The central bank had managed to cut rates by 750bps, which restarted the debt-fuelled growth engine...
One way to look at low global inflation is as evidence of policy successes on the part of countries' central banks — especially in Emerging Market (EM) countries, where inflation rates are often below their central bank targets.
The first estimates of May's figures show very clearly that overall inflation has accelerated after several months of stability, proof that the ECB's accommodating policy is being efficient. The analysis of Thomas Page-Lecuyer, Senior investment specialist at CPR AM.
According to Valérie Quesada and Christophe Dehondt, Rate & Inflation Manager at CPR Asset Management, 2018 is the year of the return of inflation. It returns from the United States and will be transmitted to the Euro Zone. We should see 10-year inflation expectations at 2.4% in the United States and 1.5% in Europe ...