What do you make of the energy-inflation story?

Fuel prices are pushing inflation up in the UK, US and Canada simultaneously (UK CPI, US CPI, Canada CPI). The transmission is textbook — the central bank responses might not be.

What do you make of the energy-inflation story? — moving average crossover diagram
A fast moving average crossing a slower one

Discuss:

  • how energy-driven inflation differs from demand-driven
  • which central banks you expect to respond, and how
  • the currencies you're watching because of it
What do you make of the energy-inflation story? — central bank rate path diagram
A central bank's policy rate path across recent meetings

Background: oil and CAD.

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