The step missing is Federal Reserve policy. The key reason we should expect Democrat households to be wrong about their inflation expectations is that the Fed will not let another bout of rapid price rises happen. It will impose tighter monetary policy than otherwise in the face of Trump’s policies.

After experience of Biden administration, fighting price rises likely to be political priority over targeting economic growth

Unhedged feels only a little reassurance. We thought inflation was all but beaten four months ago, and were wrong; once burnt, and all that. Despite this good report, however you look at it, core inflation is closer to 3 per cent than 2 per cent, and the trend is sideways, not down.

Reports of the demise of US inflation have been greatly exaggerated. Today on the show, Rob Armstrong and Aiden Reiter discuss the continuing high numbers and what the Fed might do about it this year. Also they go long Ohio State and short New Year’s resolutions.

And almost as expensive due to years of cash flowing in to escape the inflation in neighbouring countries such as Argentina. What’s nicer than an ocean-view apartment to preserve your wealth in real terms?

Economists polled by Reuters expect Wednesday’s US consumer price index to show inflation of 2.8 per cent in December, up from 2.7 per cent a month earlier. They anticipate that core inflation, which strips out volatile components such as food and energy prices,

The Bank of Japan is likely to raise rates at its January 24 meeting following recent supportive comments from BoJ governor Kazuo Ueda and deputy Ryozo Himino.

Wall Street finds fresh exuberance, while any doubt that living became more expensive under the outgoing administration is dispelled.

The battle of expectations continues. Republicans believe inflation will fall to 0.1%, while Democrats foresee 4%.

Let’s face it, while they are intellectually fascinating, there are no good news stories about bond markets. It’s always “someone’s defaulted”, “someone’s crashing the economy”, or some other such awfulness.

Shares in UK bakery chain Greggs fell more than 10 per cent on Thursday with the company blaming weak consumer confidence for a slowdown in sales.

Simply sign up to the Global Economy myFT Digest -- delivered directly to your inbox. Central banks around the world are expected to lower borrowing costs as global inflation eases from the multi ...