Inflation is falling—but not enough

Before the pandemic the idea of an annual rate of inflation of 10% in the euro zone would have seemed like a horror story. In November it was good news. Inflation had been 10.6% the month before. A similar surprise came from America. As inflation falls, so does the expected pace of interest-rate increases. On December 14th and 15th the Federal Reserve, European Central Bank and Bank of England will each probably raise rates by half a percentage point—a deceleration from the three-quarter-point rises that have recently prevailed.