As you know, I am keeping a wary eye on inflation. The issue that has emerged is the rapid increase in inflation across global markets led by the US which is now reporting an annual inflation rate of more that 6%.It is noteworthy that Jerome Powell, the Chairman of the US Fed removed the word ‘transitory’ from his latest inflation comments.
This is compounded by the global logistics and supply chain problems which have caused significant increases in global shipping costs with a flow on effect on the price of manufactured goods and raw materials across global markets. The result will be to put further pressure on inflation. In Australia, it has resulted in a chronic supply shortage of goods in the run up to Christmas for both retailers and consumers. I enclose a commentary by David Bassanese, Chief Economist of Betashares, which is well worth reading with a preview of 2022 markets.
Artemas Wealth Management
Level 8,
1 Castlereagh Street,
Sydney NSW 2000
