Our Scans · (FS.6.07) Inflation · Weekly Summary

• [New] Financial markets now expect to see just one rate reduction by the Bank of England in 2025 due to stubbornly high inflation and flatlining growth. SKY
• [New] To be fair to the current Chancellor, bond yields are rising sharply in many other countries, reflecting renewed fears about global inflation and excessive government borrowing worldwide. City AM
• [New] Some fixed mortgage rates have already edged up amid concerns that inflation could remain higher for longer, curtailing the ability for the Bank of England to cut interest rates 'as sharply as hoped'. Shares Magazine
• [New] While the reconfiguration of global supply chains could raise costs and inflation due to increased focus on strategic resilience, the global economy's adaptability should not be underestimated. IFA Magazine
• [New] Food inflation will continue to accelerate, which will add to the squeeze that weary consumers are feeling from inflation and high interest rates. investing.com
• [New] Inflation: While we expect US policy changes in 2026, we think they are unlikely to substantially alter the trajectory of the US economy or monetary policy. PDS Planning
• [New] Though more rate cuts are expected in 2025, the FOMC may proceed at a slower pace as they monitor inflation and unemployment. Forbes
• [New] Monetary policy is currently too restrictive for inflation to be sustainably at target, which will lead the Bank of Canada to further ease policy with more interest rate cuts in 2025. RBC Thought Leadership
• [New] When US consumers face fewer affordable options on many goods, inflation will rise again, leaving interest rates higher and slowing growth. GZERO Media
• [New] Most forecasts expect mortgage rates to go down a bit in 2025 as inflation slows and the Federal Reserve lowers the federal funds rate. Business Insider
• [New] While headline inflation is expected to settle at the ECB's 2% target in the course of 2025, services prices are still rising at nearly twice that rate, adding to lingering concerns over wages that have prevented policymakers from sounding the all clear. Economic Times
• [New] Gold and silver are continuing to offer long-term appeal in 2025, bolstered by several factors, such as rising U.S. debt, inflation risks, and global uncertainty. Global X ETFs Europe
• [New] Precious metals may offer long-term appeal amid rising U.S. debt, inflation risks, and increased demand for silver in solar panels, supported by central bank accumulation and anticipated Fed rate cuts. Global X ETFs Europe
• [New] Inflation expectations for 2026 have dropped to 4.6%, providing the South African Reserve Bank with room to cut interest rates. BizNews.com
• [New] Other economic risks include government debt, a possible resurgence of inflation, and China's economy. Simply Wall St
• [New] Interest Rates Hold Steady: The Bank of England predicts inflation is easing and rates may not go up from where they are - great news for buyers if so! UK Moneyman
• Investec expects the recent trend of headline inflation being driven higher by energy and food inflation, whilst core inflation remains steady to continue into December. investing.com
• Inflation is expected to remain under control (with the possible exception of the US) and most economies should see interest rates easing. Simply Wall St
• Global trade tension does not always translate into immediate gold buying if investors believe inflation is contained or trust that central banks will manage any slowdown effectively. Forex Factory
• Inflation in the US is expected to reaccelerate, but to fall below target in the eurozone. ABN AMRO Bank
• Heightened regulatory compliance across numerous jurisdictions may drive up costs, while proposed trade policies in the US could further exacerbate global inflation. Accountancy Age
• Some of the incoming administration's policies could lead to increased inflation, complicating the Fed's economic predictions and muddling the outlook for interest rates. Commercial Observer

Last updated: 14 January 2025