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.
Synchronised global growth
Lea continued: “The global economy continues to strengthen, with growth synchronised across all major geographies – the first time this has happened since the 2008 financial crisis.
“Strengthening economic activity equates to rising demand, which in turn will likely drive upward pressure on pricing, given much of the spare capacity in the economy has been eroded since 2008.
“Consensus expects global GDP growth of nearly 4% this year, an acceleration from an estimated 3.8% growth in 2017 and 3.1% in 2016.”
Tags: Ashburton | Inflation | Investment Strategy
