Inflation: passing or persistent

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.

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