25 May Inflation Q & A – should we be worried about higher inflation?
Key Points:
- Inflation will likely rise further in the months ahead due to base effects, bottlenecks & reopening but it’s likely to fall back again from later this year as these drivers fade.
- Shares face short-term correction risks but as inflation settles the broad trend is likely to remain up.
- Viewed in a very long-term context, we are likely now going through the bottoming of the 40-year decline in inflation that’s been in place since the early 1980s.
