Comment Inflation is not as dead as we all thought – it was merely resting A huge build-up of household deposits and the overhang of pent-up demand are poised to cause an upsurge of inflation Roger Bootle 17 January 2021 • 7:00pm It has been a recurring theme of my articles over the last six months that at some point in the not too distant future there could be an upsurge of inflation. Over recent weeks, commentators on both sides of the Atlantic, as well as many market operators, have started to fret about this. […] The upshot, I said, was that central banks and governments would find it surprisingly easy to get inflation down and to keep it down because their policies would now be operating with the grain of developments in the real economy, instead of against the grain as they had been in the inflationary 1970s. […] But after this experience many analysts and market operators have come to assume that low inflation is pretty much inevitable. […] In particular, I recognised that the policy stance of the authorities is critical to the generation of inflation.
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