Back to inflation

Some stability has returned to financial markets over the past few days thanks to some inflation-friendly economic data, some dovish signals from several central banks, and most notably the Bank of Japan, together with some upbeat corporate earnings news. That said, heightened geopolitical tensions are keeping investors anxious. Uncertainty is additionally being amplified by the potential for some further unwinding of Japan’s carry trade in the period ahead. In our charts this week, we examine:

·         The global growth and inflation consensus

·         The GDP consensus for the US versus Japan

·         Japan’s GDP growth in Q2

·         US inflation

·         UK inflation and the labour market

·         Airport passenger numbers