Monthly inflation rates, which provide a good indicator of current inflationary pressures, fell very sharply in November and December; monthly core inflation averaged only 0.6 percent in November and December, which was much lower than the average of 3.8 percent in the previous four months.
(Note: estimated increase in balance sheets of the Bank of England, Bank of Japan, ECB and Federal Reserve.) Extensive monetary easing by central banks has stimulated asset prices globally, reduced risk spreads, and until recently, generated extremely low levels of market volatility.