What can inflation-strugglers learn from inflation-killers?

Could theoecd nightmare be over? Across the club of rich countries, consumer-price inflation fell from a peak of 10.7% in October 2022 to 6.2% in September. The latest data from America and Britain offer more encouragement. And wage growth is slowing. As a consequence, share prices are rising. Investors hope that the world has turned a corner, and that central bankers will soon cut interest rates.Yet they may be getting ahead of themselves. calculated a measure of “inflation entrenchment”. We found that the disease, symptoms of which first appeared in America, was infecting the whole rich world. We have repeated the analysis, looking at core inflation, unit labour costs, “inflation dispersion”, inflation expectations and Google-search behaviour. We rank ten countries on each indicator, then combine the rankings to form an “inflation-entrenchment” score.