inflation

Highly anticipated new consumer price data showed the inflation rate in Australia hit its highest level since 1990 in the December quarter. But analysts are mixed on whether inflation will moderate later this year or become more entrenched.

The market view is still too optimistic, according to the BlackRock Investment Institute, and investors aren’t truly considering the risk of a recession.

The US economy should experience a “benign disinflation” over the next six months as pandemic-infused snarls unravel. That should mean good things for stocks, at least in the short term.

After a dip in October, the inflation rate is back to a 30-year high, according to ABS statistics for November that put into doubt hopes the Reserve Bank of Australia will pause rate hikes soon.

The Reserve Bank of Australia is sticking to its view that inflation will be temporary, despite its poor forecasting track record. Economists aren’t so sure.

Senior secured loans act as an important inflationary hedge in times of rising inflation according to Invesco’s chief investment officer.

Inflationary pressures are expected to ease over the next six months according to federal budget forecasts, while consumer-focused and housing stocks could benefit from government policies aimed at boosting consumer spending and the availability of affordable housing.

Chinese deflation is exacerbating US inflation, which could lead to further wage price spiraling and a US core inflation figure stuck above 3.5 to 4 per cent according to BCA Research.

Mortgage holders will start to see the effects of sequential rate rises by December, but it’s after the break that the real impact will hit home.

The bullish market reaction to the latest US inflation read, should come with a pinch of salt.