Could higher US inflation boost euro’s international role?
Divergent rates of inflation may compel investors to look for alternatives to the dollar, panellists say
Divergent inflation readings in the US and the eurozone could be one factor that boosts investor demand for a safe alternative to the US dollar.
After rising quickly in the first few months of 2021, inflation in the eurozone is forecast to have declined to 1.9% in June, exactly on target. However, in the US, the personal consumption expenditures price index (PCE) – the Federal Reserve’s preferred measure of inflation – rose year on year by 3.9% in May, well above target.
In a recent panel
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