How Has The Covid-19 Pandemic Affected The Inflation Outlook?

Due to deglobalisation and higher commodity prices, inflationary risks are increasing worldwide.

- Iain Power

The arrival of a viable vaccine should release a significant amount of pent-up demand, which we think will also push up inflation expectations.

As the effects of the national lockdown kicked in, we saw record-low levels of inflation in South Africa. In light of the massive stimulus programs underway worldwide, in an effort to keep economies afloat, the big question facing investors is whether these stimulus programs will lead to higher inflation rates in the future – and what this means for investment portfolios.

The global outlook