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Stock markets may be roaring ahead at the thought of the US Federal Reserve cutting interest rates this year, but the International Monetary Fund isn't convinced that the global inflation battle is won — despite what much of the developed world seems to be convinced of.
The IMF has warned the global economy is at "risk of major financial fallout" if inflation persists.
And as chief business correspondent (and occasional blog guest) Ian Verrender writes, the message seems to have been lost in the noise:
The culprit behind this warning is the persistent growth in the price of services, particularly across the developed world.
Soaring goods prices, and particularly fuel, may have kicked off the inflation spike. But the scourge since has moved on.
In Australia, that has manifest itself in everything from haircuts, to rent, insurance and health care with services prices up 4.8 per cent in the most recent data.
And the difficulty, from the Reserve Bank of Australia's viewpoint, is that jacking up rates won't directly help solve those underlying price pressures.