BIS research points to ‘slower disinflation ahead’

Breakdown of post-Covid surge finds services prices playing bigger role

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Inflation has fallen rapidly in many economies, but the improvement may slow in the months ahead, research by the Bank for International Settlements finds.

An article in the bank’s quarterly bulletin breaks down the post-Covid surge in inflation to study the sectors that played the biggest roles in driving price rises. 

Pongpitch Amatyakul, Deniz Igan and Marco Jacopo Lombardi find that goods prices were the main drivers during the “initial phases” of the surge. However, they say that their

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