- Rising shipping costs and lengthening delivery times have reignited the discussion about a return of reflationary forces.
- Business surveys in the eurozone industrial sector have started to point to some upward pressure on factory gate prices and potentially core goods prices.
- However, it is way too soon to shift the focus from deflation to reflation risk in the eurozone, not least with a double-dip recession in train.
- Disinflationary trends have been entrenched for a decade and, looking beyond some near-term transitory upward pressures on inflation, are likely to persist.
For further details see:
Eurozone - From Deflation To Reflation Risk?