Inflation warnings are mostly ‘just in case’ : Mike Dolan

Inflation warnings are mostly ‘just in case’ : Mike Dolan

(The author is editor-at-large for finance and markets at Reuters News. Any views expressed here are his own) LONDON- As grandees of the investment world fall over themselves to warn of long-absent inflation up ahead, financial markets appear ever calmer about the risks of that new regime unfolding. Is the post-pandemic inflation scare over already Thursday will likely see the United States record the highest consumer price inflation rate in 13 years - just shy of 5% - and the fastest rate since 1993 if food and energy prices are cut out. Yet, bond and stock markets have been buoyant for weeks - seemingly comfortable with Federal Reserve signalling this is temporary and possibly even marking a peak of distorted 'base effects' measured against price falls as the pandemic hit a year ago. The past 12 months of COVID-related disruption has led to supply bottlenecks and jobs market distortions that may persist a little longer, but policymakers reckon these too will subside. Echoing that mantra from major central banks, the World Bank on Tuesday said the 1% jump in world inflation forecast for this year wouldn't warrant a policy change as long as inflation expectations stay under wraps. And U.S.