#Inflation is slowly grinding higher and should continue to do so throughout 2016. Key points: The labormarket is tight and labor costs are trending higher. The credit cycle is reinforcing the inflation cycle. Theimpact of lower #energy prices is rolling off headline inflation figures. The pace of dollar appreciation isslowing (less of a headwind for goods inflation). There is more upside to services prices inflation. Globalcyclical momentum will be a swing factor for upside/downside risks to goods prices.
Capital Market Outlook is a weekly publication that offers Bank of AmericaMerrill Lynch clients insight into #economic trends and current marketconditions. Contact your client manager to discuss ways to navigatetoday’s environment and position your company for success.