Rolf Englund IntCom internetional
Inflation expectations have gone up
My personal inflation expectations have gone up from something "close to, but above" 2 per cent to about 3 per cent
Globalisation is shifting into a phase, where it is no longer strongly disinflationary, but mildly inflationary due to a rise in global demand, especially for raw materials, energy, and transport services, goods where the supply cannot be quickly expanded.
The third reason is a secular shift in the balance of power from profits to wages, thus reversing a trend that has started in the 1990s.
This is happening because
The ECB, the Fed, and the Credit Crisis,