Move along, nothing to see – the nonchalance of central banks

Inflation continues to accelerate in most advanced economies. This is true for both monthly and annual data, both headline and core. So why are central banks so sanguine about inflation developments? Recent months have, on the whole, seen inflation continue to accelerate in most of the large advanced economies. As…

Continue reading

Factored in – but how high and for how long?

Markets have woken up to the inflation risk Central bankers, however, display less concern But markets may still underestimate the extent of coming inflation  Bond yields have begun to rise and equity markets have fallen, both developments apparently because market actors have woken up to the risk of higher inflation.…

Continue reading