How Real is the Threat of Global Inflation?
ECRI
28-March-2008
Recently, there has been growing concern about accelerating global inflation. Even with the economy flirting with recession, U.S. inflation rose to a two-year high in January.
Meanwhile, for the last four months, Eurozone inflation has been running at the fastest pace in 14 years, and in China inflation has accelerated to an eleven-year high. This underscores the danger that the upswing in international inflation may be converting a disinflationary environment, which the global economy had been enjoying, to an inflationary one.
ECRI’s latest analysis examines international inflation cycles in order to anticipate turning points in global inflation. Furthermore, it addresses the paradox of rising global inflation in the midst of an international slowdown, even as the U.S. pattern bucks the global trend.
This information is excerpted from a full report issued March 26, 2008 to professional subscribers. For information on how to read the complete story and to subscribe to ECRI's services click this link.