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Vietnam estimated Thursday that higher food, transport and housing costs had raised inflation this month to 9.3percentt from 8.8percentt last month.
[C14.] Reports Reinforce Inflation Fears The industrial sector grew in January for the 12th consecutive month, the National Association of Purchasing Management said in a report that raised inflation worries.
The American industrial sector grew in January for the 12th consecutive month, though at a slightly slower pace than in December, the National Association of Purchasing Management said yesterday in a report that raised inflation worries.
"If bond markets believed the Fed's new policy reflected stronger growth prospects, they would have raised inflation expectations," Charles Dumas, chairman of the London consulting firm Lombard Street Research, wrote in a note.
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It will raise inflation.
"Such shocks push up unemployment and raise inflation.
But they also raise inflation, which calls for tightening.
Large budget deficits also directly raise inflation expectations.
So yes, a central bank can raise inflation by raising inflation expectations.Are higher interest rates the most effective way to do that?
If the central bank were to raise inflation expectations that would provide the necessary monetary traction.
That could temporarily raise inflation expectations and lower real interest rates.
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