Economic update: The growing inflation puzzle

What’s really going on in the global economy? ING’s economists and strategists have the answers. Read the short report.

The financial markets have started 2018 where they left off in 2017. Manifold geopolitical risks continue to be treated as background noise, and a stream of mildly positive growth surprises continue to keep asset prices buoyant. In our view, forecasters may still be underestimating the upswing, in which case a bigger threat to the markets’ mood may come from inflation. 2018 may give some answers to the puzzle as to why inflation hasn’t already stirred.