Making a comeback: Four factors pushing inflation higher in 2018

Robert Lea: 'Inflationary pressures are now starting to build.'

clock • 3 min read

Inflation has been 'conspicuous in its absence' since the financial crisis, writes Robert Lea, but four key factors mean it is likely to make a return in 2018

Inflation has been conspicuous in its absence since the financial crisis, in spite of the significant stimulus injected into many of the world's major economies. The sustained pick-up in global growth has also so far failed to stir any meaningful inflationary forces. However, inflationary pressures are now starting to build. Below, we identify four factors likely to drive inflation higher over the course of 2018. Energy prices  We expect rising energy prices - principally driven by the higher price of oil - to drive inflation higher. Since bottoming out in February 2016, the pri...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Why investors 'can't outrun' slow-moving demographics

Why investors 'can't outrun' slow-moving demographics

'Demographic change is a key megatrend'

Darius McDermott
clock 07 March 2024 • 5 min read
Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

Spring Budget 24: Ten key takeaways from Jeremy Hunt's speech

British ISA, Office for Budget Responsibility, tax cuts

Valeria Martinez
clock 07 March 2024 • 4 min read
Spring Budget 24: Chancellor unveils long-term UK growth plan

Spring Budget 24: Chancellor unveils long-term UK growth plan

Includes British ISA launch and further NI cut

clock 06 March 2024 • 1 min read