Sunday, 21 May 2023

Inflation to surprise on the downside

Inflation set to freefall

Something I've been musing for a long while, is whether inflation could fall 'too far', or turn negative over the next year or two. 

It wouldn't exactly be a surprise if it happened. 

After all, on the demand side we've seen the fastest pace of monetary tightening in modern history.

And on the supply side, things are rapidly being righted too.

Shane Oliver of AMP regularly reports his pipeline indicator, and guess what...


Look out below!