Don’t get too excited about the recent pickup in inflation around the world analysts at HSBC warned earlier this week in the bank’s regular Global Equity Strategy research booklet.
HSBC: Inflation Won’t Be Around For Long
Since the global financial crisis, inflation has been sluggish in many developed nations and last year, as oil prices dragged down the price of petrochemical products, deflation reared its ugly head. However, during the past few months, headline inflation rates have beat expectations in both the US and the UK. Break-evens also moved sharply higher with the UK hitting 3%, following the sharp decline in sterling, and the US climbing to 1.6%.
