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Macro Minutes: Inflation: Where Do We Go from Here?
Key Points
- COVID lockdowns caused an extreme shift from consumers mostly spending on services to focusing on goods.
- The shift in consumption caused inflation in goods, leading to goods accounting for most of the increase in core inflation. But, we believe goods inflation will likely moderate going forward.
- While wage growth could stay strong, this does not necessarily mean total inflation must also rise.
Investing in financial markets involves a risk of loss and there is no guarantee that all or any invested capital will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.
