Inflation

Brexit divergence puts Bank of England in a bind

3 Nov 2016

The pound has fallen as investors brace for the economic pain of Britain’s exit from the EU. Meanwhile consumers are behaving as if nothing has changed. Rising prices will squeeze spending, leaving BoE Governor Mark Carney trapped between slower growth and higher inflation.

Inflation is next nerve-jangler for investors

18 Oct 2016

After years of undershooting price targets, some rate-setters, including Mark Carney in Britain, are now talking about tolerating overshoots. Equity winners will vary depending on whether inflation is of the good or bad variety. But global bonds are losers either way.

Inflation shows up at wrong time for Mark Carney

18 Oct 2016

UK consumer prices are rising at their fastest pace in nearly two years. It should be a proud moment for the Bank of England chief, who has been struggling to achieve exactly this. Unfortunately, the pound’s fall is going to give him a bit too much of what he wanted.

Fed governor’s rate view helps her Treasury pitch

13 Sep 2016

Lael Brainard struck a dovish note on interest rates ahead of the central bank’s next meeting. She’s also a leading candidate to be Treasury secretary in a Clinton administration. Her soothing words could help mollify progressives suspicious of her past role in trade deals.

Chancellor: No hyperinflation, just Weimar malaise

13 Sep 2016

Central-bank money printing hasn't produced the spiralling prices that plagued the Weimar Republic. It has, though, delivered some of the social disquiet of 1920s Germany. Policymakers urging more extreme monetary actions need to exercise caution lest they get what they wish for.

UK economy tiptoes down predictably gloomy path

20 Jul 2016

A new Bank of England report hints at rising prices, risks to investment and delayed hiring plans since Britain voted to leave the EU. Even more worrying, there are reports that demand for loans is easing. This medley of problems wasn't hard to forecast, but is hard to fix.

Russian retailers can expand but they can’t hide

2 Jun 2016

A devalued rouble and deep recession have hit Russian shoppers. More are going to open-air markets for bargains instead of Western-style retail chains. To compensate for less spending per capita, the big supermarkets are building in every place they can reach.