SUBSCRIBE

CATEGORIES

Global inflation pick up is transitory – Citi’s King

imageForex10 minutes ago (Jul 01, 2021 05:41AM ET)

(C) Reuters. FILE PHOTO: A woman enters a shop with a wide range of products, amid the coronavirus disease (COVID-19) pandemic, in Berlin, Germany, April 22, 2021. REUTERS/Annegret Hilse

LONDON (Reuters) – A pick up in inflation in major economies is temporary with rises in wages remaining the missing ingredient, Citi’s global markets strategist Matt King said on Thursday.

Inflation in the euro area is at 1.9%, right on the European Central Bank’s target of “below but close to 2%”. U.S. consumer prices accelerated 5% in the year to May, notching up their biggest year-on-year increase in 13 years.

Such data has fuelled a debate among policymakers and in markets over whether a pick up in inflation is transitory or a sign of sustained move higher after years of laying dormant.

“I am in the transitory camp, I’m not convinced that what we are seeing is no more than bottle necks,” King told a Citi media summit. “What you need is a sustained wage price cycle and I’m not convinced there’s a change here.”

Global inflation pick up is transitory – Citi’s King

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.