How long will inflation remain a sleeping giant?

INFLATION

Ian Gunner, portfolio manager of the Altana Hard Currency fund at Altana Wealth, says so far the threat of inflation has been muted but this could soon change.

The US Federal Reserve has taken significant measures to support the economy through the post-financial crisis period, mostly in the form of money creation that surpasses anything seen previously. An increase in the money supply of this magnitude – the monetary base has almost quadrupled since 2008 – would have modern Monetarism architect Milton Friedman turning in his grave regarding the potential implications for higher inflation. Thus far, the cry of many in response to this monetary maelstrom has been “so what?” The bulk of indicators such as CPI, PPI and commodity prices continue...