Skip to content

Again, there is no surprise here: anyone with the bank of an envelope could work this out for themselves. However, the reason is not falling energy prices: stable energy prices would be enough to deliver this phenomenon. Falling prices might well lead to deflation in 2024.

But what the report does not address is why, as a result, interest rates are still expected to go up.

Because we generally think that positive real interest rates are a good thing to have in an economy?

3 thoughts on “‘Allo?”

  1. An accountant, let alone a Professor of practice in Political Economy, ought to know that disinflation is NOT the same as deflation. One is a shrinking of prices, the other is shrinking of production etc (“real value” of the economy).

Leave a Reply

Your email address will not be published. Required fields are marked *