Inflation and the investment outlook

John Redwood

Too much inflation is bad news for asset prices and for living standards. We are now at the point where high inflation is biting into people’s incomes and forcing them to make tougher choices about what they can afford.

Some companies can pass on the full cost increases they are experiencing when paying staff, buying energy and sourcing raw materials because they sell essentials and have strong brands. Others will start to struggle as demand for more discretionary items drops or where their brand is not strong enough to get away with a substantial price rise.