Cairo – Mubasher: Despite collapsing commodity prices and contracting Chinese PPI, global core inflation rates have remained quite steady. Outright global deflation remains a distant risk: global growth is not contracting, tighter labor and capacity are offsetting, and expectations for deflation are low, according to a report issued by Bank of American Merrill Lynch.
In addition, global central banks continue to pursue accommodative policies and innovate to push inflation back to target and anchor expectations.
Central banks target inflation rates of almost around 2% to boost growth and fend off price contraction.
Global commodity prices are seen a decline, especially oil that hovers around a 11-year low.
