How are lower oil prices affecting inflation?

The drop in global oil prices since mid-2014 will push many advanced economies into deflation, but the trough will vary considerably between economies. And while inflation should rebound rapidly in the US and UK, the risk that deflation becomes ingrained is much greater in the euro-zone and Japan.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.