Barclays Wealth: no quick fix for inflation

In the July edition of its Quarterly Investment Strategy Report, the wealth management service asserts that the problems caused by rising inflation are serious and that central banks will find them difficult to deal with. And, with oil prices and inflation tipped to stay high, the potential exists for wage/price spirals to occur in some of the major developing economies, it is argued. As a result, Barclays Wealth is pessimistic for 2009 and has reduced its overall equities overweight stance. Nevertheless, it still expects growth in the major developed economies both this year and next. ...