Anthony Rayner: The inflation jigsaw and what it means for asset allocation

For a good few years, deflationary pressures have run the world economy. Globalisation and the increase in supply of goods, services and labour into the world economy have been dominant downward forces on prices and wages. Meanwhile, unfavourable demographics and, more recently, excessive debt, have contributed to weak end-demand. As a result, inflation has been the furthest thought from most investors' minds. There are a number of reasons why inflation is now back in the spotlight. Recent headlines were dominated by ‘Marmite-gate' - a spat between Unilever and Tesco on who should absorb...