4 factors driving inflation and what it means for investors
By Kirsten Hastings, 13 Feb 18
Inflation has been conspicuous in its absence since the financial crisis, in spite of the significant stimulus injected into many of the world’s major economies, according to Robert Lea, head of global equity research at Ashburton Investments.
Energy prices
“We expect rising energy prices – principally driven by the higher price of oil – to drive inflation higher,” Lea said.
“Since bottoming out in February 2016, the price of a barrel of Nymex Crude Oil has risen more than 120% to $65 (£47, €53). Almost every single sector of the global economy is – directly or indirectly – reliant on oil.
“We expect the sharp rise in energy prices to feed underlying inflationary forces over the next 12-18 months.”
Tags: Ashburton | Inflation | Investment Strategy
