“Curiously, the only thing that went through the mind of the bowl of petunias was; Oh no, not again..”

Inflation is what inflation is.. Prices are still rising, Central Banks are watching, the US debt ceiling crisis will distract us all, and Donald Trump remains… “extraordinary”. All feels a bit unstable.

esterday’s US CPI numbers look good at a glance, but the reality is the Western economies may face ongoing sticky inflation and long-term stagflation while reversing the economic damage of a decade plus of monetary experimentation. That requires new investment approaches.

Inflation across the West looks to be more entrenched than markets believed – Higher for Longer. Maybe it’s time to accept it’s going to take time to fix, and look elsewhere for returns.

The pace of US CPI inflation moderated slightly, but it’s too early for the market to conclude rate hikes are over. There are many imbalances still to resolve – especially in consumer credit. Meanwhile, the new UK premier’s clumsy attempts to blame the BOE raise questions.