Blog: Should inflation be a real worry?

At this juncture, investors are trying to deduce whether rising inflation is a short-term concern – another disaster scenario to drive the headlines – or whether current figures are merely the tip of a very large, and as yet, unquantifiable iceberg. Either way, it’s all been enough to unsettle the markets. From our vantage point, the keys to the equation are that inflation and subsequent policy responses will diverge substantially, and that the prospect of higher levels of inflation in the long term, are very likely. The territory will certainly become trickier to negotiate. Inflation...