INFLATION is like air in a car tire: if gone, it is hard to move on. But there’s also a significant risk to derail if the pressure is way too high, where an explosion and crash could result. Looking back at the past 18 months, a few countries have crashed economically, where high inflation played a significant factor, though in a major part of the world, low inflation is more of an issue.
Globally, low inflation has, now and then, caused some concerns, though it has been a part of the sweet spot for all kinds of securities, to the pleasure of investors. Low global inflation also continues to be one of the megatrends that we spend time on in my company. Despite consideration, I keep my primary scenario that is a continuation of the current situation, with fairly low inflation around the globe. The reason remains the same with the surplus of labor force globally, an energy surplus, excess production capacity, and further does globalization lead to ongoing price competition.