4 factors driving inflation and what it means for investors
By Kirsten Hastings, 13 Feb 18
Inflation has been conspicuous in its absence since the financial crisis, in spite of the significant stimulus injected into many of the world’s major economies, according to Robert Lea, head of global equity research at Ashburton Investments.
Wage inflation
“US wage inflation appears to be finally on the rise, with average wages rising 2.9% in January, the highest rate of increase since June 2009,” said Lea.
“The underemployment rate rose to 8.2% in January, with job openings remaining close to a record high. Anecdotal evidence from a range of US corporations adds to the wage inflation outlook, with Walmart recently raising starting wages for new employees from $9 to $11 an hour.”
Tags: Ashburton | Inflation | Investment Strategy
