Danger Alert: Big Wave Of Mergers, Declining Market Debt, Light Volume, Soaring Food Inflation…
Investmentwatchblog.com
June 23rd, 2014
Things are potentially dangerous out there!
Why inflationary pressures are building across the globe
Inflation is not just heating up in the U.S. Price pressures are growing globally, according to a research note from J.P. Morgan.
The brokerage powerhouse says its global inflation index jumped to 2.6% in May from 2.1% in February on a year-over-year basis. That’s where J.P. Morgan expected the pace of inflation to end up by year end. And the firm’s core inflation index, which strips out food and energy, has climbed to 2.1% from 1.8% a few months ago.
What’s surprising, J.P. Morgan economists say, is that the increase in inflation is not mainly due to higher food and energy prices. They say the sudden uptick in inflation suggests that companies are “regaining some pricing power.” In other words, companies around the world are able to pass the higher costs of doing business onto their customers by charging more.
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