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Economic Viewpoint

Is the Reflation Trend Strong and Widespread?

March 21, 2017
François Dupuis, Vice-President and Chief Economist • Hendrix Vachon, Senior Economist

Inflation rates have been coming up around the world in the last few months. The financial markets tend to read this as a signal that monetary policies will soon become less accommodating, as is happening in the United States. That being said, the recent rebound by inflation primarily reflects the rise in oil prices. To judge how strong and widespread the reflation cycle is, we must examine several variables.

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