Some ideas from Nordea
Over at Nordea, they've constructed a believable narrative around the evolution of inflation that's captured in this chart:
I certainly believe that we're in the 'we don't care' phase right now and I expect that to be underscored even if Thursday's CPI numbers are high.
For more-sticky inflation overall, they point to a few factors:
- Rent prices are rising and they appear to be sticky
- Food prices are soaring
- As they say "we tend to think that the labour market is running hotter than anticipated already as supply is not going to return as boomers ain't coming back"
- Governments will continues to spend heavily
It's a good note, read it here.
