This week we saw clear signs of divergence across the global economy as various regions battle inflation. The three most likely outcomes for inflation are; receding without a recession – the fabled soft-landing; inflation falling on the back of an economic contraction - a hard landing; or, inflation staying higher for longer. It looks like all three are beginning to take hold. In the UK, inflation is coming down slower than hoped for, while in Europe news that inflation is falling rapidly but the region has entered a technical recession suggests a hard landing could be on the cards. Meanwhile, in the US robust jobs numbers mean it still has a chance of pulling off a soft landing.
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