Inflationary times?
Inflation may be coming back. What risks does this present?

There is an increasing amount of coverage about the possibility of inflation returning for a reasonable period of time.
News sources such as The Financial Times
, The Economist
, The Guardian
, The BBC
and others are all covering the current state of affairs, describing how inflation is rising around the world as economies open and large government fiscal spending continues.
In Europe, Eurozone inflation is up
as their economies reopen. In the UK, The Bank of England has warned in May about inflation risk. In the US, the Federal Reserve said in May that the sharpest rise in April in US consumer rices since 2008
is manageable.
Maybe the current inflationary signs are indeed transitory. But maybe they are signs of a long-term change. As The Economist described in February, if inflation persists, global economic policies could be forced to change.
In thinking about risks to investments and the financing of activities we undertake, it will pay to think carefully about this particular financial risk - to think through "ranges of outcomes" and to make an informed decision on how to proceed based on your financial risk appetite.
(Note: access to article links in The Economist and The Financial Times provided in this blog post may be restricted)






