What to tell clients about continuing stubborn inflation

Inflation remains a major preoccupation for financial markets globally. If it drops, central banks have a path to cutting rates and reviving their economies; if it remains stubbornly high, policymakers may be forced to lift interest rates higher, depressing economic activity and, potentially, creating recession. Understanding its impact is crucial in building a resilient investment portfolio. The UK appears to have the most intractable inflation Most major Western nations have similar problems, although they vary in magnitude. By contrast, many emerging markets were quick to raise rat...