Anticipated rise: Shoppers at a market in Kuala Lumpur. Some observers say the jump in inflation is temporary due to the base effect of low inflation last year. — Bloomberg
POST the Covid-19 economic recovery, it is generally expected that the price environment will move from deflation (reduction of the general level of prices) to inflation as economic activities and domestic demand improve amid the prevalence of spare capacity in some industries.
The standard way of discussing about inflation is to look at the state of the labour market, inflation expectations, and shocks to commodity as well as food prices.
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