The last mile of inflation has a bad reputation

Firm hand: The headquarters of the ECB is seen in Frankfurt, Germany. The bank has chided traders and warned that speculation about cuts is unhelpful to policy deliberations. — AFP

IN the rapidly evolving outlook for interest rates, some things are still sacrosanct. The pace of price increases has slowed significantly, and the argument is now how much – rather than when – borrowing costs will be lowered this year.

Traders have latched on to the idea that relief will come by March, and some economists even flag a period of below-target inflation.