Talking Trends: economic growth and inflation stay elevated
4 February 2025
News
According to high-frequency indicators and surveys, the economy was expanding fast in 2024 Q4, although its growth could slow down at the end of the year.
Seasonally adjusted growth rates of consumer prices remained elevated in December 2024—January 2025, which suggests that demand still surpasses the capacities to build up supply. Nevertheless, the current decline in credit activity and fiscal policy normalisation will be gradually decelerating the increase in demand.
To bring inflation back to the target of close to 4%, it is necessary to maintain restrictive monetary conditions for a long period.
More details are available in the new issue of the macroeconomic bulletin Talking Trends.
Preview photo: Raland / Shutterstock / Fotodom