Here’s a reason to be skeptical about a continue rise in inflation

Underlying signs on inflation aren’t great

Bloomberg TV just had a great segment on the nuts and bolts of inflation and showed that procyclical inflation — the places where prices should rise in an economic expansion — isn’t showing the kind of uptrend you would expect.

The big question facing central bankers globally is: Do we wait for inflation to rise? Or take it on faith that it will come with better growth?

For now, they are overwhelmingly leaning towards the first option but some may soon opt for option 2.

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