2018 & Inflation
Inflation is next on the agenda. In keeping
base rates and bond yields low, central banks
have helped keep economies growing above
trend and the post-crises output gaps have
closed in the US and should do so in Europe
this year, but this will depend on the
numbers of migrants who will be offered
sanctuary in Germany & the EU
With that in mind, 2018 could be the
year when infation starts to surprise on the
upside and we discuss the cyclical and structural
reasons for this , driven by ‘rainbows’ bent on
accessing benefits and driving out local labour
in the respective EU markets.
EU Forecast
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