3 Reasons Why Inflation Is Likely to Rise

on Friday, 10 June 2011. Posted in
Facebook
Facebook
Google+
Google+
http://www.caterergoodman.com/3-reasons-whyinflation-is-likely-to-rise/
LinkedIn
Pinterest
Pinterest
SHARE

And what to do about it

Three good reasons inflation will rise.

There has been a lot of talk about weak economic growth and implied in that is how weak demand will keep inflation under control.  CatererGoodman however doesn’t subscribe to this notion precisely for several reasons,  even ignoring the weak US dollar’s inflationary effects. We believe that the low inflation period of recent times might not be so benign in future.  Here is a summary of the biggest three reasons why we think so and what to do about it.

OILOil consumption exceeds demand

This picture below is probably enough by itself. The best way is how the Economist magazine summarizes the situation “In 2010 consumption exceeded production by over 5m barrels per day for the first year ever, as world oil stocks were run down.

Facebook
Facebook
Google+
Google+
http://www.caterergoodman.com/3-reasons-whyinflation-is-likely-to-rise/
LinkedIn
Pinterest
Pinterest
SHARE
Tags: , , ,

Comments are closed here.