Inflation Watch: Why Norway and the UK are the odd ones out on inflation
We have been banging the drum on soft inflation data in the US and in the Euro area for a while and we are currently seeing the very signs of that in the data.
Core inflation momentum (MoM annualized) is below target in several large economies including the US, France and Brazil, but there are a few odd ones out with substantially increasing core inflation momentum such as Norway and the UK. What makes Norway and the UK stand out? And where do we prefer to receive and pay rates across major markets?
Let’s jump right into it!
Chart 1: Inflation heatmap across major countries