Anatole Kaletsky, co-founder, Gavekal
Investors are “mispricing” the dangers of long-term structural inflation, says economist Anatole Kaletsky.
“One month of benign inflation data has convinced many analysts that the US Federal Reserve, the European Central Bank, and even the Bank of England are close to delivering ‘price stability’ and will soon pivot decisively in favour of stimulating employment and economic growth,” he writes on Citywire. However, while inflation rates in the UK, US, and Europe have moderated, the risks will remain high over the medium to long term, even if upcoming inflation releases show lower readings compared to earlier in the year.
“The global economy is now at the beginning of a long-term inflation uptrend,” driven by “deglobalisation, demographics, politics, war, environmentalism, and technology,” says Kaletsky. Despite these “blindingly obvious”…
