The Tilney Investment Outlook - Nov 2021

The spectre of stagflation: real or imagined?

Published: 04 Nov 2021 Updated: 13 Jun 2022

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.

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This article was previously published on Tilney prior to the launch of Evelyn Partners.