A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China’s factory activity shrank in December.
“Energy base effects will bring about a sizeable reduction in inflation in the major economies in 2023, but stickiness in core components, much of this stemming from tight labour markets, will prevent an early dovish policy ‘pivot’ by central banks,” analysts at NatWest Markets wrote in a note. “What central banks are inducing is essentially excess cyclicality, which is – they overstimulated in 2021 and triggered an inflationary boom and then overtightened in 2022 and triggered a disinflationary recession. It’s exactly the opposite of what you want central banks to do,” he said.On the markets, European shares rose thanks to gains in classic defensive sectors, such as healthcare and food and beverages.
The BOJ is now considering raising its inflation forecasts in January to show price growth close to its 2 percent target in fiscal 2023 and 2024, according to the Nikkei.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: inquirerdotnet - 🏆 3. / 86 Read more »