While everyone is now obsessed about surging inflation, most people have missed that the big global forces underpinning price spikes are reversing.
But their opinions appear to be slightly contrarian, or at least not universally shared among many observers who have jumped on the inflation bandwagon.A Sydney-based equity fund manager says global inflation will probably subside in the next six to 12 months. , after he is officially reconfirmed as “president for life” later this year – as is widely expected.
Energy is a big input cost into food, transport and manufacturing – contributing to price changes across the economy. But Brent crude, the global benchmark, was selling for about $US110 a barrel on Friday, significantly below its pandemic-high of $US139 a barrel. That is not guaranteed. The credibility of central banks has taken a hit, after they underestimated inflation and their economic forecasts during pandemic lockdowns turned out to be far too gloomy.
And this is why steady-as-she goes with wage rises - let’s understand what is happening first. Someone please explain to Sally.