A notable pick-up in inflation is not underway around the world, argues Jim O’Neill, global head of economics at Goldman Sachs.

In spite of concerns raised by commentators over the inflation outlook, Mr O’Neill says: “Price pressures are receding in the US and have not really materialised in Japan, and while there are pockets of inflation in several countries, we continue to expect a slight easing in world inflation in 2007 and 2008.”