Another game of brinkmanship

THAT inflation in the United States eased again in December, giving relief to households and businesses with possible implications for the rest of the economy, sounds like very good news.

Indeed, the latest inflation data released last week by the US Bureau of Labour Statistics, showing that prices fell 0.1 per cent compared to November, suggested that price increases may be moderating even without a recession that some had suggested would be necessary to cool the economy.

Moreover, if, indeed, as it seems, that the US Federal Reserve’s fight against inflation is working, it could lead eventually to a slowdown in interest rate hikes by the central bank, which would amount to fantastic news for the financial markets and for the entire economy.