Central bankers already stated their willingness to rapidly ramp up interest rates at the first sign of inflation. In truth, we are already seeing the first signs of inflation.
The huge monetary expansion that is taking place on both sides of the Atlantic today is de facto inflation. Of course, in order to avoid an inflationary Holocaust, the central banks must tread a very thin line between stimulating the economy and triggering inflation.
Considering that food prices continue to rise at almost 10% per annum, there can be no doubt that inflation is already in the pipeline. However, the gerrymandered figures of governments and central banks state that we are actually in a period of deflation.
