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Higher inflation could trigger recession - Deutsche bank

Deutsche Bank economists fear rising inflation could lead to a structural recession as high price expectations and the response from the central bank (tightening) might squeeze economic output in the near-to-mid-term. 

Wage price inflation, full employment, and Trump's fiscal stimulus is boosting inflation in the US, according to Deutsche Bank. 

It also believes a weaker dollar and higher oil prices are the two factors pushing US inflation up and so the inflation will likely overshoot the target sooner than expected. 

 

 

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