Insight Investments: markets hyper sensitive to inflation

He asserted that the financial markets are reacting to a heightened sensitivity to inflation, pointing to the hike in energy prices impacting headline inflation and the fact that central banks are mindful of this filtering through into core measures. Merritt commented: "Certainly some measures of inflation expectations are rising and anchoring these expectations is a key policy goal. The ECB has again taken the lead in enforcing its inflation-fighting credentials when, at its latest policy setting meeting, it indicated its intention to raise interest rates irrespective of indications of ...