Inflation: short-term spike or longer-term trend?

I thought it would be interesting to get people’s views on inflation, particularly the question of whether the increase will be relatively transitionary or sustained as in previous decades.

A rise seems somewhat inevitable given government spending to counter the pandemic and it is already apparent from some commodity prices, but do you think it will be:

  • Modest and temporary,
  • Modest and sustained, or
  • Spiralling and sustained?

0 voters

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maybe add more options, modest and sustained :grin: (at least we’re hoping for that)

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Your wish is my command. Happy cake day by the way!

For anyone interested in the topic, this article was what got me thinking:

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Inflation is a funny one really, apparently J Powell is relaxed despite the price of everything going up on America.

Also in the UK I believe the government would say it’s stable or low. However I am noticing stuff generally going up.

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This Powell needs to stop playing so chill.

Better for markets if its a slow and steady: little signs of policy change from FED instead of sudden hikes when its getting out of control later down the road

Markets already quite jittery

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Sharp and temporary (until the rebound from the lockdown ends and interest rates change)

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