Oxford Economics: Inflation — this time isn’t different

The prospect of large shares of some economies’ populations being vaccinated in first half 2021, supporting a return to some degree of normalcy, has stoked renewed concerns that inflation could pick up sharply this year, according to Oxford Economics.

With markets priced for monetary policy to remain accommodative in response to a further sustained period of low inflation, clearly inflation risks need to be weighed carefully. The threat of a surge in inflation asserted by many is overstated, and Oxford expects core inflation to remain weak for some time.

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