Inflation – Transitory or Persistent

Head of Investment Strategy & Research, Australia

  • Supply bottlenecks as a result of Covid may lead to higher inflation risks as the global economy reopens.
  • Bond markets are pricing in higher than target levels of inflation with US 5 year break evens peaking in May.
  • Commodities across the board have seen record rallies over the last 12 months.
  • Investors should be thinking about how to manage the inflation risks in their portfolios.