Sentences with word «disinflationary»

That suggests that weak domestic demand is becoming an increasingly significant source of disinflationary pressure, adding to the impact from falling world energy prices and the end of a period of administered price rises as governments sought to repair their finances by increasing revenue from sales taxes and charging more for services such as health care.

It is possible he could recognize more fully the dominance of disinflationary forces, and as a result be less keen on raising rates and more inclined to let the economic expansion continue.

The Bank appeared confident despite the fact that «disinflationary effects» of the nation's slowing economy — due to «low consumer energy prices» — were only partially offset by the inflationary impact of the lower Canadian dollar.

But while chasing performance is a terrible move, so is sticking with a bad strategy or a strategy that is likely to be a lousy fit in a given macro environment (i.e. owning bonds in an inflationary environment or owning gold and commodities in a severe disinflationary environment).

Core inflation has been close to 2 per cent, with disinflationary pressures from economic slack being offset by transitory effects of the past depreciation of the Canadian dollar and some sector - specific factors.

Core inflation is close to 2 per cent as the transitory effects of the past depreciation of the Canadian dollar are roughly offsetting disinflationary pressures from economic slack, which has increased this year.

In combination, these factors formed a negative feedback loop, which reinforced disinflationary pressures, as they transmitted via trade linkages, FX and weaker commodity prices.

In the event, inflation rose by less than was forecast, in part because of the decline in the pass - through of the exchange rate depreciation, as well as a greater - than - expected disinflationary impulse from the Asian region which put downward pressure on import prices.

While such a basket has historically been a drag on returns during disinflationary periods, it has provided increased inflation protection when investors have needed it most.

The small increase in inflation in the past two quarters mainly reflects the withdrawal of the earlier disinflationary impact from declining import prices.

Meanwhile, the improved outlook for emerging markets helps reduce disinflationary pressures on developed markets.

Tighter US monetary policy could pressure emerging markets via a stronger dollar, but also help them fight disinflationary forces, says Ellen Zentner.

So there is no appetite for disinflationary pressure in today's global environment, whereas two decades ago the deflationary pressures that Japan might have unleashed were welcome.

On the other hand, the latest CPI figure was a little below expectations, and may indicate that global disinflationary forces are stronger than had been expected.

And I think if you look at that, that is not disinflationary, that is going to be deflationary.

There are some signs that inflation could come out of hiding in the next 18 months, but I would be very surprised if we saw a substantial increase in long rates in the coming couple of years just because there are too many disinflationary macro headwinds.

That has helped entertain disinflationary expectations,» Coeure said.

«The rising disinflationary pressures, which fundamentally reflect weak demand, warrant further monetary easing in the coming months.»

With less capital and labor needed to create considerable output, technology has become a significant disinflationary force.

Among the most important disinflationary factors is demographics.

The emerging - market recovery could reduce further disinflationary pressures on economies such as the U.S., even as domestic demand ramps up, with the private sector borrowing and spending more.

The worst news in recent PMI surveys came from price sub-components reflecting renewed disinflationary pressures (see chart above).

Emerging and developing economies are slowing and sluggish growth in the Developed world has combined to paint a picture of a directionless growth profile predisposed to disinflationary tendencies.

In today's global economy, we believe disinflationary forces are still very strong.

We believe that with disinflationary forces keeping inflation relatively low, the Federal Reserve will be able to keep the pace of interest rate rises very gradual.

Core inflation has been temporarily boosted by sector - specific factors and the pass - through effects of the lower Canadian dollar, which are offsetting disinflationary pressures from slack in the economy and competition in the retail sector.

«It seems reasonable to assume that another year of extreme moves in US dollar (higher) and oil / commodity prices (lower) would likely continue to drive this negative feedback loop and make it very difficult for policy makers in emerging markets and developing markets to fight disinflationary forces and intercept downside risks,» the analysts add.

... we can not rule out that the sustained period of undershooting the inflation target along with global disinflationary pressures are weighing on inflation expectations.

That is because an era was ending that had seen «disinflationary forces» from developing countries such as China and a «protracted period» in which there was an «underpricing of risk.»

In that environment disinflationary pressures were welcome.

However, this outcome is consistent with the idea that the disinflationary forces in the economy are not quite as strong as previously expected, largely because the economy has performed better than previously expected.

Total CPI inflation remains near the bottom of the Bank's target range as the disinflationary effects of economic slack and low consumer energy prices are only partially offset by the inflationary impact of the lower Canadian dollar on the prices of imported goods.

At any rate, inflation is unlikely to be a problem in a world suffering from disinflationary pressures, and would be even less of a problem in an overconsuming economy like that of the United States than it would be in economies — like those of Germany, China, and Japan — whose consumption levels are held down by hard - to - reverse distortions in income distribution.

Likewise, the disinflationary tailwind of lower oil and gas prices should provide a much greater disposable income boost to lower income households than higher income groups, as the former generally spend a larger share of income on energy.

This may sound like a strange thing to say — everyone else thinks of rising inflation as a bad thing — but remember that the more you repress household income growth, the more you divert resources, especially through cheap financing, from consumption into production, and so this tends to be disinflationary.

The floating currency is helping to reduce the disinflationary risks that have come with the cut in our national income.

And third, investment adds to our stock of capital and increases the level of «potential output» or productive capacity — the level of output our economy can produce sustainably without generating inflationary or disinflationary pressures.

The dampening effect of falling imported goods prices at the final stage of production continued to ease over the year to December, suggesting that the disinflationary impetus from the appreciation of the exchange rate in 2002 and 2003 has moderated substantially.

While ongoing strength in domestic inflation over the past couple of years has been offset by the disinflationary effect of the large appreciation of the exchange rate in 2002 and 2003, this effect has probably been less than would have been expected based on previous experience.

Unless central banks move beyond quantitative easing and actually print money to directly finance consumption or public investment, debt tends to be disinflationary, as high debt levels can calcify potential future growth and inflationary pressures.

Other factors driving rates lower — low nominal global growth, an older population, lower fixed income supply and the disinflationary pressure of technology — will likely remain in place.

With all that said, there is a bright side to the weakness in emerging markets and commodities for developed markets: a disinflationary stimulus similar to what occurred in the late 1990s and, more recently, since 2011... with the caveat that contagion does not result.

This rebound in inflation should be supported by the stabilization in commodity prices, reversing the disinflationary impulse of 2015.

As I discussed back in early August and November, there are several powerful, long - term factors that are keeping rates contained: low nominal gross domestic product (GDP), itself a function of changing demographics, the disinflationary impact of technology, and even lower yields outside the United States.