Economist Roubini doubted the return of inflation in developed countries to 2%
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The economies of developed countries, including Great Britain, the United States and the European Union, will not be able to restore the inflation rate to 2% in the near future. With this forecast shared on Bloomberg TV, New York University economics professor Nouriel Roubini.
The scientist noted that the economic growth of developed countries is constrained by a number of structural changes. Among them are the aging population and the restriction of migration flows. States are also facing increased costs to combat the effects of the pandemic, climate change and inequality. All of this affects and increases production costs, Roubini added.
“The era of great moderation with stable growth and inflation of less than 2% has come to an end. Now the inflation rate in developed countries can be set at a level of 3% to 4%,” the professor clarified.
Due to accelerating inflation and rising energy prices, the European Central Bank may increase the base rate by at least another 0.25 percentage points before the end of the year. This forecast was given by 10 out of 11 analysts previously surveyed by Vedomosti. In August, the inflation rate in the European Union was 5.3%.
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