Strong deflationary trends

By Jane Wallace Global inflation will not be a threat in the medium term but deflationary trends will become stronger, according to the latest thinking from Baring Asset Management's Strategic Policy Group (SPG Despite the short-term inflationary concerns, the SPG thinks that the longer-term trend is deflationary, particularly in the labour market. Here factors such as the internet and worldwide access to cheap labour in emerging countries such as the Far East and Latin America are having an impact James Williams, chairman of the SPG, said: "The way modern economies are structured it is ...