BRIAN KANTOR: Markets keep close eye on global inflation outlook
07 October 2021 - 14:41
Prices are busting out all over the world. Prices charged by US producers are 20% higher than they were a year before. Consumer prices were up by a mere 5% in August. That is before the recent tripling of natural gas prices.
The cause of higher prices seems clear enough. They are a response to buoyant demand stimulated by Covid-inspired extra government spending, and central bank funding of far larger fiscal deficits, which has dramatically increased the supply of money, specifically bank deposits held by households and firms...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.