Why higher inflation will rear its head

Although inflation has been the dog that has not barked, it would be extraordinary if higher levels did not appear. Protecting against inflation is both cheap and wise, explains Glyn Owen, investment director at Momentum Global Asset Management.

The dog that has not barked There are concerns that, after such a long period of weak growth and deflationary threats, risks will be taken with inflation. The very long period of zero interest rates and extraordinary money creation that we have experienced will not only borrow growth from the future but could be storing up new imbalances and instability. Debt levels across the developed world and key parts of the emerging world, China being the best example, remain very high, unsustainably so in some cases. How long will it be before policy makers turn to inflation to solve the deb...