Inflation has been a thorn in the side of central banks worldwide for over two years, but Goldman Sachs’ chief economist Jan Hatzius believes the era of pain for consumers is coming to an end. And Hatzius is someone worth listening to, given his recent track record on the economy.
The combined core inflation rate of the developed markets that faced an inflationary surge during the pandemic fell to an annualized pace of just 2.2% over the past three months, and only 1.3% in November, according to Goldman Sachs data. That’s right around central banks’ 2% target. It means one thing to Hatzius: “Global inflation continues to plummet.”
