Jonathan Punter, Tom Becket and Mark Holman discuss the topic of inflation
Along with interest rates, inflation has been a permanent feature of much of my professional life.
Even when relatively benign (as both have been, up until recently) they are priority indicators for the health and trajectory of pensions and investments.
But among the unexpected after-effects of the pandemic, inflation is one of the most significant. Despite counselling that its impact will be temporary (it might well be) there’s also growing concern that its effects will be felt for longer yet, whatever the classification of its duration.
After a decade or more of dormancy, this had led to more pointed talk of central banks raising the interest rate in response: with the Bank of England in the spotlight this Thursday.
So instead of another blog, I thought we’d peer a bit deeper by inviting my colleague, Punter Southall Wealth’s chief investment officer, Tom Becket, and chief executive of TwentyFour asset management Mark Holman to talk through some of the main themes.
And while I’m conscious that many of you have a sound knowledge of inflation and all its facets, I wanted to start from the beginning: what is inflation and why does it matter?
We then go on to cover a handful of themes including whether or not inflation is here to stay, if it offers an investment opportunity, what it means for the UK in particular and what impact, if any, will it have on the global debt mountain, piled even higher as a consequence of covid.
I’d obviously invite you to listen to the entire conversation but you can skip to the bits which interest the most. I’d also be interested to know your thoughts.
Watch the conversation in full below:
Or click for these briefer sections:
What’s inflation and why it’s important
Transitory or a bigger story?
Inflation as an investment opportunity?
Inflation as a geopolitical factor
What does inflation mean for the UK?
What impact will inflation have on the global debt mountain?