U.S. Inflation Mirage, Aid Package, China Trade Gap: Eco Day

(Bloomberg) -- Welcome to Monday, America. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:

• The story of U.S. inflation in 2021 could very well amount to this: It’s all a mirage
• Alternative, high-frequency data show that activity in several of the world’s largest advanced economies slid at the beginning of December, reflecting a surge in the rate of Covid-19 infections and stricter containment measures, according to Bloomberg Economics
• Bipartisan negotiators on a $908 billion pandemic relief package are planning to unveil more details of their proposal on Monday, aiming to settle on language that can satisfy enough Republicans and Democrats to secure passage of one final tranche of Covid-19 aid before Congress breaks for the year
• Whether it’s wealthy people fleeing to their second homes or college students forced to move back in with their parents, the coronavirus has set off a great migration in the U.S. this year. But in many cases, it’s just amplifying trends that were already there
• Donald Trump campaigned on fixing the U.S.’s trade balance with China, but after almost four years of his administration, including a trade deal which was meant to even the score, the gap has continued to widen
• Chile’s consumer prices unexpectedly dropped in November on falling apparel costs and easing food inflation, reflecting an uneven economic recovery and waning impulse from early pension fund withdrawals
• A British official warned that talks over a future trade deal with the European Union could collapse on Monday unless negotiators make progress in the next few hours
• Finally, here’s what to be on the lookout for in the world economy this week

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