29 Mar 2021 7 min read

Inflation: immovable forces versus irresistible trends


Inflated egos may be all too common in finance, but one area where I believe we need to stay humble is in our inflation forecasts.



Inflation is one of the topics that we discuss the most in our team. With two competing narratives, it is the perfect subject for debate – structural deflationary forces on the one side, versus enormous stimulus and growth in money supply and savings on the other.

But with the market’s consensus inflation expectations having been so wrong for so long, in a recent Bloomberg interview I explained why we shouldn’t get carried away in either direction.

We also talked about the risks facing the technology sector and the importance of financial advice amid the social-media-inspired trading frenzy we have witnessed this year.


LGIM contributors