ForexTraders submits:

The perception that inflation is going to rise in the near future is common among traders in spite of the absence of solid data backing the argument. This week we’ll offer our updated opinion about the inflation outlook.

To have high inflation in this country, one of two conditions must be fulfilled. Either we need to have rising wages, justified by increasing employment, or perhaps productivity falling faster than employment, or we must see some external shock invalidating the profit expectations of firms, leading them to raise prices.

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