Goldman Sachs are concerned about ongoing inflationary pressure across the world:
Price pressures have strengthened globally, driving sustained and elevated inflation that hasn’t been seen in decades.
And, there is not just one driver:
While inflation drivers vary across countries, the persistence of some factors, such as global supply chain issues and energy trade disruptions, are likely to keep inflation a key risk for policymakers.
And, what's ahead?
We believe that higher inflation prints may continue in the near-term as sources of inflation still remain broad-based.
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The ECB will kick off its rate hike cycle on Thursday this week. Hiking into an energy crisis and approaching recession:
And there is no end in sight for Fed rate hikes.
