Growth is accelerating but inflation is not and that’s a worry

Central banks’ goal of an inflation rate close to 2% will not be achieved, and the reasons why are not obvious, says Daniel Gros

CENTRAL banks have a problem: Growth is accelerating, but inflation is not.

For most people, growth without inflation is the ideal combination. But central banks’ goal is an inflation rate of “below, but close to 2%”, as the European Central Bank (ECB) puts it. And, at this point, it is hard to see how that can be achieved.