Deflation fears likely to abate

There are upside risks as the US labour market is tightening and we’ve seen the first tentative signs of bargaining power being restored to workers. That said, I would not overplay the inflation outlook, as it is still expected to remain comfortably low and in line with the average of the past decade or so. What will likely change, however, is that fears of entrenched US “deflation” seem likely to abate over the coming year.


David Bassanese
Chief Economist
BetaShares

Author, columnist, investment strategist and macro-economist. Previous roles at Federal Treasury, OECD, Macquarie Bank and AFR. I develop economic insights and portfolio construction strategies for BetaShares' retail and adviser clients.

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