Inflation is dead. At least that's the view of the vast majority of economists, investors, policymakers and financial commentators. The view has been given further currency in recent months via various speeches from IMF director, Christine Lagarde. She's urged policymakers to fight deflation as it's the major threat facing developed economies in 2014. The latest consumer price inflation (CPI) statistics, whether it be in the U.S., Europe or China, seem to support her view.
There are signs though that inflation shouldn't be written off altogether. The price action of agricultural commodities and gold is suggesting as much. Oil hasn't yet followed suit but should be closely watched. There's also evidence of a tightening labor market in the U.S., which normally precedes wage increases and higher inflation. Admittedly, these are tentative signals rather than definitive evidence (which usually only comes after the fact).
But some of these things are indicative of