41. Brisk growth can accelerate inflation, which erodes the value of bond interest and principal. 42. Central bankers cut interest rates when recession seems a greater risk than an overheating economy that accelerates inflation. 43. Choy predicts these incentives could include raising the state grain purchase price, a move that would accelerate inflation. 44. Concern that the economy is growing fast enough to accelerate inflation may be stifling demand, Retzer said. 45. Debtors would have had much more difficulty repaying foreign lenders in hard currency, and excessive devaluations would eventually accelerate inflation. 46. European bonds fell, tracking U.S. Treasuries, after U.S. economic reports suggested the economy may grow fast enough to accelerate inflation. 47. Faster growth, economists say, can accelerate inflation. 48. For example, it could accelerate inflation by making imports more expensive. 49. For bondholders, the increase in jobs pointed to a rebound in the economy that may accelerate inflation and keep the Fed from cutting rates. 50. Gilts fell yesterday after a smaller-than-expected decline in retail sales bolstered concern the economy may be growing fast enough to accelerate inflation. |