To understand whether Inflation is transient, investors are looking deeper into the numbers. Inflation may be more transient than they realised.
Would You Be Surprised
Professional Investors have recently been rotating their portfolios based on the view that inflation is not going away soon. But is this a given?
Looking at headline CPI alone does not tell the whole picture. Digging into the US core CPI excluding food and energy costs, the 'other' drivers of inflation recorded a mediocre 0.3% increase in March in the US - the slowest pace in 6 months.
The world has had time to re-group and re-plan. And as such, the 'other' factors driving inflation - tight labour markets, supply-chain disruption and pent-up demand for a return to normal living - are resulting in a re-normalisation that supports the 'transient is back' argument.
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The Greenflation Problem
How Do You Invest in Bonds When Interest Rates Rise?
It Depends On Portfolio Constraints
Has Peak Inflation Arrived in Europe
ONE TO WATCH