Market Commentary

Inflation

Possibility of inflation.

We have been talking and writing about inflation for several months. The latest figure from the most recent CPI number released yesterday has inflation running at over 6% annually up from 5% last month. The economists are saying it is temporary as the economies around the world restart. It is hard to understand why they think that when a recovering world economy will put more pressure on prices and we are facing a shortage of most commodities while at the same time central banks are printing excess money in almost every country that has a central bank.

It can be temporary of course but that would mean trying to stop the economic expansion and I doubt any government will do that any time soon.