On both sides of the Atlantic, the recent rise in inflation has mainly been driven by volatile components (energy and food), while the core measures are stable. In the United States, inflationary momentum is more worrying, as economic activity remains strong and Donald Trump’s economic policies are likely to fuel further upward pressure on prices. The inflation outlook in the United Kingdom is more uncertain, with the main drivers (sustained wage growth and fiscal measures) being counteracted by the increasingly clear fragility of economic activity. Japan has been seeking higher inflation and it remains under control there, while in the euro zone, the 2% target remains in sight.
Chart books on economic developments in major economies
