Inflation Creep Is Real, Morgan Stanley Says

Inflation that’s been elusive for almost a decade is starting to materially crop up in the U.S., Euro area and Japan -- signaling that the long-delayed healing from the financial crisis is boosting price growth, at last.

Core inflation in the so-called G-3 economies has risen to a 1.4 percent annual pace from a post-crisis low of 1.1 percent, and is bound to float higher, according to a research note by Chetan Ahya, Morgan Stanley’s chief economist and global head of economics. The Euro area and Japan should see a more “pronounced uptick” than the U.S., he said.