November 22, 2024
Why the West faces new inflation fears

Why the West faces new inflation fears


Central bankers have avoided celebrations and declarations of victory. They know full well that consumers and firms, stung by the highest inflation since the 1970s, would not appreciate them. In private, though, many are elated. The sharpest rise in borrowing costs in decades, dubbed “the great tightening” by the IMF, appears to have worked better than anyone expected. Global inflation has retreated to more comfortable levels. Better still, this has been achieved without a sharp rise in joblessness or a recession.



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