The Covid-19 crisis has changed the global inflation picture. Inflation risks are now larger than disinflation risks for the first time in decades. Here are five reasons why, according to Nordea Chief Global Strategist Andreas Steno Larsen.
Unemployment has declined rapidly in step with the reopening of society, but a larger amount of people is still without jobs than before the coronavirus crisis. At the same time, new job vacancies have risen sharply. This suggests that low demand is not the reason behind the high number of unemployed workers. Growing mismatch in the labour market could result in wage pressure at a higher unemployment level than we have been used to.