Euroland and US: Inflation falling |
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The rapid increase in food and energy prices over the past year has boosted headline inflation in both Euroland and the US to levels not seen since the early 1990s. Speculation concerning the outlook for inflation given recent oil price developments has proliferated. In the following discussion we try to as-sess the direct impact on future inflation of three oil price scenarios and the implications for mone-tary policy. Our analysis reasonably concludes that Euroland headline inflation peaked
Filed under: Fundamental
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