In the other corner, investors are waking up to a market where critical commodities such as copper, iron ore and lumber are seemingly hitting all-time highs every other day, driving items such as housing prices to double-digit price increases.
How will the winners of the pandemic economy cope with higher inflation? What has been happening in the United States?
An inflation-themed showdown is unfolding between the US Federal Reserve and the market. In one corner, the Fed — led by chairman Jerome Powell — are adamant that inflation will be low and controllable and any spikes such as last month’s eye-popping 4.2% year-on-year CPI rise — the highest since the 2008 crisis — will be merely “transitory”.
