Is Low Global Inflation Coming to an End?

The last few decades have been characterized by slow consumer price growth in many places around the world. Recently, inflation in major countries has remained low, even as the global economic situation appeared to be picking up. Is inflation poised to start taking a bigger bite? This issue of Economic Viewpoint looks at global inflation as well as inflation in major economies. Consumer price growth is expected to pick up, but increases will be slow and modest. Moreover, uncertainty remains high and the economic cycle driving the current price increases will not go on forever. Hence, it is too soon for central banks to declare victory by increasing key interest rates. Rather, they are expected to stay below historic norms.