The source of inflation that nearly no-one is focused on and everyone needs to worry about…

The great inflation debate that begun in earnest following the current U.S administration’s US$1.9tn coronavirus relief package in early Spring 2021 has morphed into something more serious than the jovial sideshow that is was before.   Recent monthly U.S consumer price inflation (the percentage increase in prices across a range of representative goods and services) continues to overstep forecasts.  In June in the U.S it came in at a whopping 5.4% – the highest jump since the early 80s.  If this persists, at stake is the end of cheap money upon which advanced economies have come to rely so heavily upon – that is, if increases in interest rates are deployed to combat the problem and one that has not reared its ugly head in a generation.