This monthly commentary gives a round-up of global markets and trends.
In this edition:
- Surging energy prices have contributed to inflationary pressures at a time when economic growth momentum may be weakening.
- This has led to concerns over potential stagflation, where inflation pushes prices up faster than wages and profits, forcing consumers and businesses to cut back on expenditure.
- Previous episodes of stagflation have been difficult for stock markets, with companies struggling to grow earnings.
- Stagflation remains only an outside possibility. Strong economic growth is allowing firms to pass on higher input costs to consumers without denting demand.
This article was previously published on Tilney prior to the launch of Evelyn Partners.