Inflation won’t be a threat in 2013, says Canadian macro–investment research firm BCA research.
It says, “Policy settings around the world look very inflationary with large fiscal deficits and aggressively easy monetary policies. Yet, it is hard to see inflation gaining any traction when global activity is so weak and the monetary transmission process is impaired in many countries.”
It also adds that global-traded goods prices are falling, while both wages and monetary growth are expanding very slowly in major economies.
The firms says, “There’s more of a deflationary than inflationary tone to the economic environment and it doesn’t look as if this will change any time soon.”
Read more on central bankers’ attitudes and plans.
Also read:
Investors shouldn’t worry about inflation
Who’s to blame for global inflation?
Inflation-proofing retirement plans
Food prices to escalate in 2013
Inflation isn’t a threat…for now