Are you a central banker struggling with low inflation? Blame it on an ageing population
CENTRAL bankers scratching their heads as to why inflation has stayed so low despite unprecedented loose monetary policy may have a new scapegoat: old people.
Research published yesterday by Oxford Economics, a consultancy, shows a clear correlation between an ageing population and lower inflation.
In the five years to 2015, 47 per cent of the variation in inflation rates can be explained by the proportion of elderly people in the general population, the research shows.