With the US Consumer Prices Index registering a year-on-year increase of 5% for May 2021, inflation is front of mind for investors. In this paper, portfolio managers Helen Anthony and Andrew Mulliner consider whether it is permanent or transitory.

Key areas covered include:

  • The impact of commodity prices and supply chain disruptions.
  • What does disaggregating inflation tell us about underlying price pressures?
  • Does a shift in policy regime alter the prevailing economic climate?