Global inflation watch

Danske Research Team Danske Bank A/S

Summary

Underlying inflation has moderated in the US and euro area. Inflation pressures ease gradually with weak goods inflation and in the case of US, cooling job market and lower wage growth. In the euro zone, wage growth remains sticky despite some easing in the latest Q2 data. Commodity prices have caused volatility in both realized and expected inflation as rising tensions in the Middle East and renewed stimulus in China balance still weak global manufacturing outlook. We expect 25bp cuts from both the ECB and the Fed in the coming meetings

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Author

Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

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