This monthly commentary gives a roundup of global markets and trends.
In this edition:
- Supply-chain issues, including labour shortages and production bottlenecks, are exerting a growing influence on inflation and economic recovery.
- Shortages could have a lingering impact on inflation, which is starting to show up in new areas of the economy, such as retail and food.
- Labour shortages are forcing employers to raise wage rates and some rising costs are not yet reflected in the statistics – such as rental growth.
- The risk for markets is that higher inflation could become more persistent, and this may force central banks to tighten monetary policy prematurely.
This article was previously published on Tilney prior to the launch of Evelyn Partners.