9th December 2021
Sanlam: December monthly outlook
At first glance, rising inflation may seem like a relatively simple problem to fix. Central banks, such as the Bank of England and US Federal Reserve, would raise interest rates to curb demand for goods and services. This would, other things being equal, lead to a lower rate of inflation.
However, the situation regarding inflation is, unfortunately, slightly more nuanced. Recent economic data has been mixed. While US industrial production continues to expand, it has been held back in recent months by supply issues. Moreover, US consumer confidence has dipped following a period of buoyant mood. And, with positive economic surprises being less plentiful than they were six or 12 months ago, the prospects for the global economy may be starting to show signs of a slowdown.
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