Inflation elusive, but central bankers getting twitchy

Reuters/Ross Finley/07-07-17

A significant pickup in inflation still remains tantalizingly out of reach in most developed economies — aside from asset prices — yet several central banks are leaning toward launching or stepping up efforts that could slow it down.

What has shifted in recent months is an acceptance that fiscal policy, touted around the turn of the year as the essential comeback kid after the shock election of Donald Trump as U.S. president, has not yet come back.

PG View: Inflation is the fondest desire of central bankers, and yet they are taking steps to slow inflation that doesn’t exist. The risk is that their efforts stoke disinflation, which is the bane of central bankers and heavily indebted countries.

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