Testing times for treasurers (TT Apr03 p6-7)

Mentions in the media of potential perils associated with rising inflation have become scarce. A word search of the broadsheets would, I suspect, show up more references to ‘deflation’ than ‘inflation’. But is this really a risk for this economy and our key trading partners in the US and the core of the eurozone? In sum, my answer is that deflation is probably not a major and imminent risk – with the odd exception – but that the phenomenon of disinflation is likely to be with us for many a moon.