AXA talks up inflation outlook

While acknowledging that several major dis-inflationary forces remained, such as global labour arbitrage, the internet and globalisation, Iggo asserted that a number of factors related to rapidly rising living standards in populous emerging markets were now gaining the upper hand. He said: "At the moment, emerging markets do not have policy stances that are unequivocally set against rising inflationary pressures. "There is also a focus on sustaining strong growth and keeping emerging currencies competitive. All of these mean that liquidity growth is too strong to bring about a near term...