Has inflation peaked?
In November, US and eurozone inflation rose to its highest level in decades and there is widespread concern that central banks will have to tighten monetary policy more quickly than previously anticipated. However, after increases earlier in the year, energy prices have fallen in recent weeks. In this Macro Flash Note, GianLuigi Mandruzzato looks at the outlook for energy prices and the implications for headline inflation. The conclusion is that headline inflation should decline starting in December, partially relieving the pressure on central banks.
GianLuigi Mandruzzato
8 min read
