Both UK and US central bank comments reveal thinking on policy responses to future rises in inflation. Over the period between Friday 14 October and Tuesday 18 October, the heads of central banks in the US, UK and Australia made separate but somewhat similar comments regarding inflation. They all suggested that, if inflation were to rise, they may not act quickly to try to dampen it by increasing interest rates. These comments are interesting in that they reveal some commonality in policy stances across the US, UK and Australia. Furthermore, markets may be gaining further confidence that governments will look to increase fiscal stimulus in light of growing consensus that monetary policy alone can’t do the job around the developed world of increasing inflation. The overall implication is that the perception of future higher levels of fiscal stimulus in the real economy combined with a more relaxed approach by central banks to inflation targeting is causing inflation expectations and volatility to increase.