Global Fixed Income Strategy - December 2018

Monthly insights and updates from the Invesco Fixed Income team

Dec 20, 2018 | Invesco Fixed Income

At Invesco Fixed Income, we have long forecasted below-consensus 2018 inflation. While we expected 2017’s “lowflation” trend to stabilize, we did not think core levels of inflation would accelerate, despite a strong US economy. We have also believed that inflation trends would slow in the second half of this year. Data have corroborated our view over the past six months, and we have seen inflation decelerate. Now we believe this slowing trend is coming to an end and we are about to begin a period of conflicting inflation signals. In 2019, we believe we will enter a complicated period in which core inflation is volatile and difficult to predict. That being said, we believe the US will likely remain in a moderate inflation environment.

 

To read more of IFI’s views, click on “Download PDF”.

 

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