Out of the Box #18: Time for the second inflation wave? AAAAAAH!
With the recent move in Energy, discussions on a broad second wave of inflation have resurfaced. There are similarities to the first wave, but also one MAJOR difference. Here is why..
In our Out of the Box series we aim at addressing emerging topics before they turn into consensus narratives to be ahead of the curve in price action.
The below chart made the rounds lately as energy prices have started increasing again due to the tight supply side caused by the Saudi Arabians and Russians. We admit that the study comparing the 1970s to today is mostly esoteric, but we have ourselves pondered whether inflation dynamics could return in a second wave.
Is the recent resurgence of rising prices in energy a harbinger of such a BIG new inflation wave?
Chart 1: Are we living the 1970s all over again?
With the recent move in Energy, discussions on a broad second wave of inflation have resurfaced. There are similarities to the first wave, but also one MAJOR difference. Here is why..
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