Risk of prolonged rise in inflation spurs rate tightening talk

Inflated expectations

Inflated expectations: interest rates may have to rise

All is quiet on the deflationist front. Whereas in 2010 the global deflation camp had economic soothsayers by the dozen to bolster their predictions, this year many of the prophets of deflation have disappeared, or even defected.

There is no need for a crystal ball to see why. Already in many of the major emerging markets, inflation figures are unusually high. January’s annualised consumer price inflation (CPI) came in at 4.9%, 6% and 8.2% in China, Brazil and India respectively. The exact cause

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