Is the spectre of inflation finally fading – and what could it mean for Biden?

The White House press secretary, Karine Jean-Pierre, speaks on inflation on 27 November. The economy is likely to be a big factor in Joe Biden’s political fortunes. Photograph: Michael Reynolds/EPA

For the last three years, the US and Europe have struggled with a specter unseen for a generation – inflation. Now it looks like the phantom may finally be fading.

This week the US Federal Reserve, European Central Bank and the Bank of England all held interest rates steady and cautiously signaled that the fight to tamp down soaring prices may be coming to an end.