Latest News from Newealth

20 Sep 2021

Inflation Genie

You can see from the chart above that the forecast jump in inflation has presented in the United States, Germany, Japan and Australia.

The question is whether the jump in inflation is permanent or temporary?

Our view is that it is temporary and likely to reverse as goods supply increases due to a post COVID-19 global recovery.

For example, if we take a closer look at Australia, the current jump in headline inflation has still failing to lift core inflation up into the RBA target range.

Click for chart.

Why is inflation so important because large fast moving increases in inflation destroy asset prices and that is bad news for investment portfolios.

Need help, call us to book in a conference call time.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

Share this post