LONDON: Hyperactive central banks warn of 'unmoored' inflation expectations but may well be weighing the anchor themselves.
Skewed by the oil price collapse of the past 20 months, headline inflation rates across Europe and Japan are currently near zero or even falling. Some economists now expect euro zone inflation for 2016 as a whole to be in the red and no longer dismiss the development as temporary monthly blips.
Fearful these low inflation rates might distort consumer and business behavior into putting off consumption today and wait for cheaper goods in future, central banks are scrambling to steer expectations back to inflation targets of about 2 percent.
