The Big Picture: Deflating the risk of inflation

Last week I discussed my bullish outlook for oil and other commodity prices. The obvious question arising from such a forecast is ‘what about interest rates?’. You may think higher commodity prices mean higher inflation, which in turn means higher interest rates. But there are good reasons to believe this simple relationship may not be as robust as during previous inflationary periods. By Peter Gibson

The Big Picture: Deflating the risk of inflation The Big Picture: Deflating the risk of inflation The Big Picture: Deflating the risk of inflation The Big Picture: Deflating the risk of inflation The Big Picture: Deflating the risk of inflation

The world last experienced a bout of commodity-price inflation in the 1970s, during the era of the oil-shocks.

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