Inflation to fall dramatically?

[peemac]

Diesel probably be going up in price due to price caps on refined oil products from Russia, they reckon that the diesel will be transported to India and then re exported to Europe at higher price due to the increased transportation costs and margin, the idea is to deny Russia the increased revenue even if it means Europe ultimately pays more .
The only good thing is it might scupper the governments plan to reverse the reduction in excise on diesel and petrol in february, if diesel is going back up in price it will be very difficult for the government to increase the excise taxes again

A large number of refineries have reopened in India and China and also the eastern seaboard of USA.
Russian diesel is now a trickle and refinery margins are circa $40+ ( historically $10 or less)

I don't think we see much change

 

[joe sod]

I see Philip Lane former Irish central bank governor and now on ecb board saying that ecb will continue to hike interest rates despite bank turmoil because of persistent high inflation rates.
Remember this is the guy that was saying in late 2021 that there would be no interest rate rises, despite the fed already hiking rates back then and ecb rates at zero, and that inflation was just transitory, Remember that memorable over used jargon.
He will be wrong again because the major banks cannot take much more interest rate rises due to overloading on low interest bonds during covid. The ecb will be forced to back off much more interest rate rises and just allow inflation to run at higher levels than they are saying. They are not getting back to 2% inflation now, that's just a joke