Inflation or lack of it

Drop in oil prices is Pushing inflation expectations lower and lower, this isn’t a good thing.Not near deflation panic yet but lower inflation usually results in lower economic growth and at its worse it” increase the real value of Debt,thus reducing the spending power of firms and Consumers “(economics help)

U.S 5,10 and 30 year breakeven inflation rates. These are pricing in what market believe inflation will be over certain time horizon.
This is Fed favorite A 5y5y Inflation swap, in 5 years what will inflation look like in 5 years. This has touched a multi year low

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.