A rebound in some commodity prices and stabilisation of core inflation rates suggest that the immediate risk of deflation has diminished, but in fact it remains a significant threat in just about every major economy. Economic momentum is fading in much of the world while output gaps remain large. Tighter fiscal policy will only add to the disinflationary pressures during the year or two ahead.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services