Inflation: back to the 1970s?

Inflation: back to the 1970s?

The immediate impact of the Covid-19 shock on inflation has been decidedly deflationary, but in light of the brewing cocktail of post-pandemic economic trends, the probability of an inflationary overshoot has also risen. In fact, ambivalent market signals suggest that participants are pricing in a higher risk of extreme inflation scenarios – on both the downside as well as the upside.

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