Global Inflation 'Surprise' Index Spikes To Highest Since 2011

The specter of global stagflation is looming ever larger as inflation across the world is beating analysts’ forecasts (even before the potential effect from Donald Trump’s economic policies) but economic growth expectations remain stagnant.

As Bloomberg notes, the global Citi Inflation Surprise Index, which measures price surprises relative to market expectations, is at the highest in more than five years.

The reading turned positive in December -- meaning inflation data were higher than expected -- for the first time since 2012.

However, in its Keynesian-Krushing way, economic growth expectations are not tracking higher - flashing red warnings signs for global stagflation.