There are signs of a reversal in recent trends of inflation, across the globe, with Japan joining recent rises in both Europe and the US. The latest reading from the US, up from 2.4% to 2.6%, is a certain reversal from recent trends lower. Deficit and debt have not been addressed, and these economies remain extremely vulnerable to any disruption, that may cause spikes in energy prices. Inflation has changed trajectory and higher inflation. spells a big problem. The US Dollar continues to boom, with the EUR plunging to 1.0560, while the GBP crashed below 1.2700.
The resurgent reserve has smashed the commodity currencies, with the AUD diving below 0.6500, while the NZD has tumbled under 0.5900. The rise in the reserve currency has been steady and sure, since the election of Donald Trump, as nervous markets await his policy for the future of the USA. Chinese economic issues have not assisted the commodity demand over the last month. Japanese economists yearned for inflation for many years and now they may be finally rewarded.
