"Everyone seems to believe that inflation will return to its boring old normal," said Chief European economist Tomasz Wieladek.
Changes in central bank policy, expectations, labor markets, and globalization mean that inflation will likely stay volatile going forward."
Depending on circumstances, this could set the scene for another large inflation target miss."
For instance, JPMorgan chief Jamie Dimon has repeated warnings of a pricey future, as global militarization and the green transition stoke inflation.
"While AI will likely have a disinflationary effect in the medium term, the associated energy consumption could contribute to higher short-term inflation."
Persons:
—, Rowe Price, Tomasz Wieladek, Wieladek, Jamie Dimon, Donald Trump
Organizations:
Service, Financial Times, Business, JPMorgan
Locations:
Europe