IMF sees a return to inflation in 2018

Author: Justin Low | Category: News

IMF's latest estimates indicate that we won't have a repeat of 2017's "stagflation"

The IMF released a growth estimate measure showing that advanced economies' output gap will turn positive in 2018 - after nearly a decade of negative output gap estimates.

A positive output gap tends to indicate high demand for goods and services in the economy, and usually is a signal that spurs inflation since labour costs as well as goods' prices tend to rise in response to high demand (not exact science, but not exact correlation either).

Well, let's see if Japan and Europe has anything to say about that.

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